Three Arrows Capital liquidator claims $1.30 billion from TerraForm Labs

According to Bloomberg, the liquidators of the bankrupt cryptocurrency hedge fund Three Arrows Capital are claiming at least $1.30 billion from TerraForm Labs Pte, co-founded by Do Kwon. This claim stems from the losses suffered by Three Arrows Capital in the 2022 TerraUSD and $Luna token collapse.

The liquidators stated in court documents that TerraForm artificially inflated the prices of $Luna and TerraUSD tokens by manipulating the market, enticing Three Arrows Capital to purchase these tokens. The subsequent collapse not only rendered Three Arrows' investments in these tokens worthless but also resulted in significant losses for other positions held.