According to Bloomberg, the liquidator of the bankrupt cryptocurrency hedge fund Three Arrows Capital is claiming at least $1.3 billion from TerraForm Labs Pte., co-founded by Do Kwon. The claim stems from the losses Three Arrows Capital suffered in the 2022 TerraUSD and Luna token collapse.
The liquidators stated in court documents that TerraForm manipulated the market to artificially inflate the price of Luna and TerraUSD tokens, inducing Three Arrows Capital to buy these tokens. The subsequent collapse not only caused Three Arrows' investment in these tokens to be wiped out, but also caused huge losses in other positions.
