Share this article
Three Arrows Capital Liquidators Now Sue Terraform Labs for $1.3B: Bloomberg
Earlier, in June 2023, the liquidators sought $1.3 billion from the founders of 3AC, Su Zhu and Kyle Davies.
Updated Aug 13, 2024, 4:50 p.m. Published Aug 13, 2024, 7:06 a.m.
- The liquidators for Three Arrows Capital (3AC) have sued Terraform Labs for $1.3 billion.
- They allege TerraForm induced 3AC to purchase Luna and TerraUSD by manipulating the market for these tokens.
Defunct cryptocurrency hedge fund Three Arrows Capital's (3AC) liquidators have sued Terraform Labs for $1.3 billion, for losses the fund suffered after the 2022 crash, Bloomberg reported on Monday.
In June 2023, the liquidators sought $1.3 billion from the founders of 3AC, Su Zhu and Kyle Davies.
STORY CONTINUES BELOW
The saga started unfolding in May 2022, when the Terra network saw its algorithmic stablecoin terraUSD (UST) and its companion token, LUNA, suffer a $40 billion collapse despite assurances from co-founder Do Kwon. By July, 3AC filed for bankruptcy stating that Terra's collapse caused irrecoverable losses.
This case alleges that TerraForm induced 3AC to purchase Luna and TerraUSD by manipulating the market for these tokens “in a manner that artificially inflated the price for the assets” before they were wiped-out, the liquidators said in court papers, as per Bloomberg.
Terraform filed for bankruptcy in Delaware, U.S. in January 2024. Do Kwon was found guilty by a Manhattan jury on civil fraud charges brought the U.S. Securities and Exchange Commission (SEC) in April 2024.
Do Kwon remains in Montenegro where he has been since his arrest in March 2023 for attempting to use fake travel documents. He awaits a final decision from Montenegro's authorities on where he is to be extradited. Both South Korean and U.S. authorities have been seeking his extradition.
Read More: 3AC Co-Founder Kyle Davies Says He Won’t Apologize for Crypto Hedge Fund Going 'Bankrupt'
More For You
What to know:
- As of October 2025, GoPlus has generated $4.7M in total revenue across its product lines. The GoPlus App is the primary revenue driver, contributing $2.5M (approx. 53%), followed by the SafeToken Protocol at $1.7M.
- GoPlus Intelligence's Token Security API averaged 717 million monthly calls year-to-date in 2025 , with a peak of nearly 1 billion calls in February 2025. Total blockchain-level requests, including transaction simulations, averaged an additional 350 million per month.
- Since its January 2025 launch , the $GPS token has registered over $5B in total spot volume and $10B in derivatives volume in 2025. Monthly spot volume peaked in March 2025 at over $1.1B , while derivatives volume peaked the same month at over $4B.
More For You
Mexico’s Central Bank Keeps a ‘Healthy Distance’ From Crypto
Banxico’s year-end report reaffirms its anti-crypto stance, highlighting legal risks, low adoption, and the need for international regulation.
What to know:
- Mexico's central bank maintains a cautious stance on digital assets, keeping them separate from its financial system.
- Banks and fintech firms in Mexico have been prohibited from offering cryptocurrencies to customers since 2021.
- The Bank of Mexico cites concerns over price volatility, cybersecurity risks, and money laundering as reasons for its cautious approach.
Top Stories
