FTX bankruptcy crashed crypto market but some hedge funds and investment funds are making huge profits on FTX claims. A London firm that specializes in trading distressed assets is making a record 200% profit on FTX claims, but the largest deal has hit a roadblock sparking legal challenges.
FTX Claims and Controversies
As FTX bankruptcy lawyers now estimate 100% return of money frozen during FTX collapse and crypto prices skyrocket, firms like London-based Attestor Ltd are purchasing whatever they can for better profits. Attestor is the largest FTX claim holder, as per Claims Market.
In 2023, Attestor signed deal to purchase claims from Lemma Technologies, one of the biggest FTX claim accounts, at the sale price of $58 million. The value of claims is expected to pay over $165 million, which is almost 200% of the sale price. However, these buying of claims are riskier trades than typical purchases of defaulted bonds or loans.
Lemma Technologies, controlled by a South Korean trader, has now opted to keep the claim for itself as the value rises amid skyrocketing crypto market. Attestor’s lawyers filed a lawsuit in New York court on allegations of “seller’s remorse,” reported Bloomberg on March 18.
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Attestor FTX Claims Impact by Haru Invest
Lemma Technologies hasn’t filed a defense against Attestor’s New York suit. Meanwhile, Lemma’s principal investor Junho Bang currently facing charges in South Korea has further escalated the drama and confusion.
Junho Bang was indicted by South Korean authorities for stealing digital assets from Haru Invest in February. South Korean authorities arrested three executives at yield platform Haru Invest for stealing 1.1 trillion won ($828 million) worth of crypto. Before halting withdrawals last June, beleaguered firm Haru Invest offered yields up to 50%.
Haru Invest called Junho Bang as the majority shareholder of B&S, a crypto trading firm that invested in tokens such as FTX’s FTT Token. Junho Bang transferred his FTX claim to Lemma in January 2023, according to the court documents seen by Bloomberg News.
Also Read: Bank of Japan Mulls First Rate Hike in 17 Years, What’s Ahead for Bitcoin and Crypto?
The post FTX Bankruptcy Claims Drama Intensifies As Bitcoin and Crypto Prices Skyrocket appeared first on CoinGape.
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