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<a href="https://optimisus.com/news/nft-news/over-300-nfts-are-relocated-to-a-new-location-by-the-three-arrows-capital-3ac/" rel="noopener noreferrer nofollow">Three Arrows Capital (3AC)</a>, a defunct crypto hedge fund, has initiated a legal action seeking $1.3 billion in damages from TerraForm Labs. The lawsuit claims that market manipulation orchestrated by TerraForm Labs resulted in substantial losses during the 2022 fall of LUNA and TerraUSD.The lawsuit alleges that TerraForm Labs artificially inflated the prices of LUNA and TerraUSD, prompting Three Arrows to invest in these tokens, resulting in significant financial losses. The lawsuit alleges that TerraForm’s tampering directly caused the severe deterioration of Three Arrows’ digital assets.The lawsuit’s resolution is indeterminate due to intricate legal intricacies involving TerraForm Labs and its co-founder, Do Kwon. Kwon was apprehended in Montenegro and is confronted with charges in both the United States and South Korea.The Montenegro court has issued a ruling for his extradition to South Korea, however, this decision has encountered several delays. Montenegro’s Supreme Court, with the request of Minister of Justice Andrej Milović, delayed Kwon’s extradition on August 8, contributing to the ongoing legal controversy.The lawsuit highlights the hazards associated with investing in cryptocurrencies and the possibility of market manipulation. The downfall of LUNA and TerraUSD serves as a cautionary message to investors on the imperative of supervision and openness in the crypto sector.The lawsuit against TerraForm Labs is being closely monitored and has the potential to establish significant legal precedents about accountability within the cryptocurrency industry. As the procedures progress, the primary concern remains on the liquidators’ ability to retrieve funds for the creditors of 3AC.

Three Arrows Capital sues TerraForm Labs for $1.3 billion, alleging market manipulation that led to the LUNA crash

Optimisus

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