Attestor and Lemma face off in court over $58M FTX agreement


  • Attestor Capital has initiated legal action against Lemma Technologies over a dispute related to the sale of FTX bankruptcy claims.
  • The lawsuit arose after Lemma Technologies allegedly reneged on a $58 million deal for FTX claims amid rising cryptocurrency prices.
  • Attestor Capital, a major player in acquiring FTX’s bankruptcy claims, seeks to compel Lemma to honor the initial agreement through legal action in New York.

Attestor Capital, a prominent London-based hedge fund, has initiated legal action against Lemma Technologies. This lawsuit stems from a dispute over the sale of claims related to the bankrupt cryptocurrency exchange FTX. Attestor Capital, known for its investments in distressed assets and private equity, has become a key player in acquiring FTX’s bankruptcy claims. The firm, alongside other major claim purchasers like Silver Point Capital and Diameter Capital Partners, has actively participated in the claims market, reportedly acquiring at least $400 million worth of claims by February, as per Claims Market data.

The legal contention arose after Attestor Capital claimed to have agreed with Lemma Technologies on a deal worth $58 million in June 2023 for the sale of certain FTX claims. However, as cryptocurrency prices, notably Bitcoin, saw a remarkable surge of nearly 130% over the past year, Lemma Technologies allegedly reneged on the agreement. Attestor Capital alleges that Lemma decided to retain the claim, attributing the decision to what they term “seller’s remorse”. This dispute has led Attestor to pursue legal remedies, filing a lawsuit in New York to enforce the original agreement.

Attestor seeks justice in FTX deal fallout

The legal dispute between Attestor Capital and Lemma Technologies unfolds against a backdrop of fluctuating cryptocurrency markets. Attestor’s significant profit margin, reported at 200% from its FTX claims, underscores the volatility and potential gains inherent in the cryptocurrency and bankruptcy claims sectors. The decision by Lemma Technologies to withdraw from the $58 million deal reflects the impact of market dynamics on financial agreements and the complexities involved in trading distressed assets.

This legal battle also casts a spotlight on the broader implications for the cryptocurrency industry, especially concerning the handling and transfer of bankruptcy claims. As both parties prepare for litigation, the outcome of this case may set a precedent for similar disputes in the future. The lawsuit filed by Attestor Capital in New York seeks to compel Lemma Technologies to honor the initial agreement, emphasizing the legal expectations and obligations inherent in such financial transactions.

Wider legal challenges for cryptocurrency entities

The lawsuit against Lemma Technologies is not isolated from broader legal challenges within the cryptocurrency sector. Lemma’s principal investor, Junho Bang, faces accusations related to the theft of digital assets from the collapsed crypto lending firm Haru Invest. South Korean authorities indicted Bang following his arrest in January, highlighting the legal risks and regulatory scrutiny facing individuals and entities in the cryptocurrency market. Haru Invest’s sudden suspension of withdrawals in June 2023 and the subsequent arrest of its CEO and executives for allegedly stealing $830 million from customers further illustrate the turbulent and often precarious nature of cryptocurrency investments.

These legal developments reflect the growing intersection between cryptocurrency markets, legal frameworks, and financial regulations. As the case between Attestor Capital and Lemma Technologies progresses, it will likely attract attention from investors, regulatory bodies, and legal professionals keen on understanding the implications for the trading of bankruptcy claims and the enforcement of financial agreements in the evolving landscape of digital assets.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decision.

Share link:

Mutuma Maxwell

Maxwell especially enjoys penning pieces about blockchain and cryptocurrency. He started his venture into blogging in 2020, later focusing on the world of cryptocurrencies. His life's work is to introduce the concept of decentralization to people worldwide.

Most read

Loading Most Read articles...

Stay on top of crypto news, get daily updates in your inbox

Related News

Long Do CEO Anomaly Interview
Subscribe to CryptoPolitan