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 Californian investor Nikolas Gierczyk has filed a lawsuit against hedge fund Olympus Peak, accusing the firm of failing to honour an agreement related to an FTX bankruptcy claim. 
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According to a <a style="color: #0000ff;" href="https://www.bloomberg.com/news/articles/2024-10-11/ftx-customer-claims-hedge-fund-cheated-him-on-bankruptcy-gains?utm_medium=social&amp;utm_content=crypto&amp;utm_source=twitter&amp;utm_campaign=socialflow-organic&amp;leadSource=uverify%20wall" rel="noopener noreferrer nofollow">Bloomberg report</a>, Gierczyk claims the hedge fund owes him over $1 million in excess recovery, citing expectations of a 129% to 146% payout for creditors under the FTX bankruptcy plan.
Gierczyk asserts that Olympus Peak, which purchased his claim at a significant discount, assured him that he would receive any excess distributions. However, in a complaint filed in federal court in Manhattan on October 10, Gierczyk’s legal team stated, 
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 “Olympus Peak made it clear that they would not be fulfilling their end of the bargain.” 
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The hedge fund, located in Greenwich, Connecticut, has not yet responded to the allegations.
This report comes on the heels of a Delaware bankruptcy judge’s <a href="https://www.reuters.com/legal/crypto-exchange-ftxs-liquidation-plan-receives-court-approval-2024-10-07/#:~:text=NEW%20YORK%2C%20Oct%207%20(Reuters,once%2Dleading%20crypto%20exchange%20collapsed." rel="noopener noreferrer nofollow">approval of FTX’s reorganization plan on October 7,</a> nearly two years after the crypto exchange’s collapse in November 2022. <a style="color: #0000ff;" href="https://www.prnewswire.com/news-releases/ftx-receives-us-bankruptcy-court-confirmation-of-its-plan-of-reorganization-302269152.html" rel="noopener noreferrer nofollow">In a statement, the crypto exchange company reported</a> that it has accumulated property distributions valued between $14.7 billion and $16.5 billion. This amount exceeds FTX’s earlier estimate of approximately $11.2 billion owed to creditors. 
<blockquote>
 “Looking ahead, we are prepared to return 100% of bankruptcy claim amounts along with interest for non-governmental creditors through what will be the largest and most complex bankruptcy estate asset distribution in history,” 
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stated John Ray, who assumed the role of FTX CEO following the company’s bankruptcy filing.
The case comes as a new report highlights a growing interest in cryptocurrency investments among hedge funds. A <a style="color: #0000ff;" href="https://defi-planet.com/2024/10/nearly-half-of-traditional-hedge-funds-now-invest-in-cryptocurrencies-new-report/" rel="noopener noreferrer nofollow">new report reveals</a> that nearly half of hedge funds focused on traditional asset classes have ventured into cryptocurrencies, with 47% now investing in this sector, up from 29% in 2023 and 37% in 2022. Among these funds, 67% plan to sustain their current cryptocurrency investments, while others aim to increase their exposure by the end of 2024.
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The post <a href="https://defi-planet.com/2024/10/californian-investor-sues-hedge-fund-over-ftx-bankruptcy-claim-dispute/" rel="noopener noreferrer nofollow">Californian Investor Sues Hedge Fund Over FTX Bankruptcy Claim Dispute</a> appeared first on <a href="https://defi-planet.com" rel="noopener noreferrer nofollow">DeFi Planet</a>.

Californian Investor Sues Hedge Fund Over FTX Bankruptcy Claim Dispute

DeFi Planet

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