Three Arrows Capital Liquidator Seeks at Least $1.30 Billion in Compensation from Terraform Labs

According to Bloomberg, the liquidators of the bankrupt cryptocurrency hedge fund Three Arrows Capital are seeking at least $1.30 billion in compensation from Terraform Labs to offset the losses suffered by the fund in 2022 due to the collapse of TerraUSD and $Luna tokens. The liquidators stated in court documents that prior to the collapse of these tokens, Terraform artificially inflated the prices of $Luna and TerraUSD tokens by manipulating the market, leading Three Arrows Capital to purchase these tokens. The subsequent collapse not only wiped out Three Arrows Capital's investments in these tokens but also resulted in significant losses in other assets.