FTX claim value soars to 92%, creditor sued for reneging on $58M deal

abdelaziz Fathi

Attestor Capital, a London-based investment firm holding significant FTX bankruptcy claims, has initiated legal action against a Panamanian company called Lemma Technologies.

The lawsuit stems from Lemma’s alleged retraction of an agreement to sell two FTX accounts, valued at $166 million at the time of FTX’s collapse, to Attestor. The agreement was formed in June 2023 after Attestor placed the highest bid in an auction organized by Lemma Technologies in May 2023.

Lemma Technologies, which acquired the accounts from its majority owner, South Korean national Junho Bang, in January 2023, agreed to sell the claims to Attestor for about $58 million. At the time, this sum represented nearly 35% of the accounts’ initial value.

However, Attestor alleges that Lemma began to express concerns over its authority to sell the claims and the potential liability Bang could face from his business associates if the transfer proceeded.

As delays ensued, Lemma Technologies is accused of attempting to renegotiate the purchase price, indicative of what Attestor describes as “seller’s remorse.” The suit highlights the rising value of FTX claims, with the average bid for claims increasing from 35% at the time of the agreement to 92% by the end of 2023. This came amid growing investor confidence in recovering funds through the bankruptcy process.

This lawsuit comes amid other legal troubles for Bang, who, along with two executives from Haru Invest, a South Korean crypto yield platform, was arrested in February on charges of embezzling nearly 1.1 trillion won ($830 million) in cryptocurrencies, from around 16,000 customers. Haru Invest has since suspended withdrawals and deposits and has taken legal action against B&S Holdings for allegedly providing fraudulent management reports.

Haru Invest acted as a cryptocurrency yield platform that has been facing troubles since it suspended withdrawals in June 2023.

According to the prosecution’s claims, the executives of Haru Invest misappropriated the coins deposited by their customers. This was purportedly done by reinvesting the assets from March 2020 to June 2023, contrary to the firm’s claims of using “risk-free diversified investment techniques” for operating a stable business.

Haru Invest had previously attributed its challenges to alleged fraudulent activities by consignment operator B&S Holdings, formerly known as Aventus. However, the arrests suggest deeper issues within Haru Invest’s operations.

Read this next

blockdag

BlockDAG’s Explosive Presale Hits $20.3M In April Swaying Investors From XRP’s Price Trends Upward, & Polygon’s NFT Market

Learn about BlockDAG’s impressive $20.3M presale results, XRP’s price increase prospects, and the booming NFT market on Polygon among the top 10 cryptocurrencies.

Retail FX

Financial Commission warns of Eplanet Brokers

The Financial Commission, a self-regulatory compliance specialist for the financial services industry, is ramping up its scrutiny of unregulated brokerage firms. Today, the independent association warned against a company called Eplanet Brokers.

Retail FX

Dubai crypto exchange steps into prop trading

Dubai-based cryptocurrency trading platform, CoinW Exchange, marked its sixth anniversary by announcing a rebranding initiative and launching a proprietary trading product.

Fintech

Bitcoin payments app Strike launches in Europe

Bitcoin blockchain-based payments app Strike launched in Europe on Wednesday, allowing users in the region to buy, sell, and withdraw bitcoin (BTC).

Chainwire

Bandit Network’s Points SDK and Brave Ads Power Astar zkEVM’s Quest Platform “Yoki Origins”

“Yoki Origins,” supported by Bandit Network and Brave Ads, introduces a gamified and rewarding experience for Astar zkEVM users, marking a significant milestone in Web3 adoption.

Digital Assets

Crypto ETFs to debut in Hong Kong next week

Hong Kong has authorized six cryptocurrency-based spot ETFs set to launch on April 30, according to Bloomberg.

blockdag

BlockDAG Among The Best New Crypto To Invest In Post 8 Billion Coins Sales; More On Bitcoin Cash Futures’ Launch & Solana Positive Predictions

Explore Solana’s ATH predictions to see whether it can rise after a $17B dip? BlockDAG sells 8 billion coins in presale as Bitcoin Cash Futures launch.

Fundamental Analysis, Market News, Tech and Fundamental

Global FX Market Summary:USD, FED, German IFO ,Gold April 24 ,2024

Mixed US economic data and Fed rate hike uncertainty are causing volatility in the EUR/USD pair, while the Eurozone and gold prices add another layer of complexity.

Market News, Tech and Fundamental, Technical Analysis

EURCHF Technical Analysis Report 24 April, 2024

EURCHF currency pair can be expected to rise further toward the next major resistance level 0.9840, which stopped the pervious waves C and B, as can be seen below.

<