Loading...

London-based hedge fund attestor files lawsuit against Lemma Technologies over FTX claims deal

TL;DR

  • London hedge fund sued Panama’s Lemma over the FTX deal, alleging breach.
  • Attestor accuses Lemma of reneging on $58M sale amid Bitcoin surge.
  • Lemma faces South Korean legal trouble over $830M asset theft.

Attestor Capital, a prominent London-based hedge fund specializing in distressed assets and private equity, has initiated legal action against Lemma Technologies, a Panama-based entity, following a disputed transaction involving claims from the collapsed cryptocurrency exchange FTX. The lawsuit comes after Attestor reportedly garnered significant profits from its investment in FTX claims and accuses Lemma of reneging on a previously agreed deal.

Disputed transaction leads to legal battle

Attestor Capital, known for its strategic focus on distressed assets, emerged as one of the major purchasers of bankruptcy assets from FTX alongside other notable investors like Silver Point Capital and Diameter Capital Partners. According to Bloomberg reports, Attestor was the largest buyer of FTX claims as of February, having acquired approximately $400 million in the bankruptcy proceedings.

The lawsuit filed by Attestor alleges that Lemma Technologies had initially agreed to sell FTX claims to Attestor for $58 million in June 2023. However, Lemma purportedly backed out of the deal amid the soaring prices of cryptocurrencies, particularly Bitcoin, which surged nearly 130% over the past year, reaching $68,309 at the time of the dispute.

Attestor contends that Lemma’s decision to rescind the agreement and retain the FTX claim constitutes a “seller’s remorse.” The hedge fund claims that Lemma failed to honor the trade confirmations, leading to the escalation of the dispute. Despite Attestor’s legal action, Lemma has not publicly provided a defense or explanation for its actions.

Attestor’s legal representatives assert that Lemma has refused to proceed with the transaction or honor the trade confirmations unless compelled by law to do so. The lawsuit in New York underscores the escalating tensions between the two parties over the disputed FTX claims deal.

Legal issues extend to South Korea

In addition to facing litigation in New York, Lemma Technologies is grappling with legal challenges in South Korea. Junho Bang, the principal investor associated with Lemma, has been accused of misappropriating digital assets from Haru Invest, a collapsed crypto lending firm. South Korean authorities reportedly indicted Bang after his arrest in January.

Haru Invest, which operated a cryptocurrency yield platform offering investors 12% annual returns on crypto deposits, suspended withdrawals abruptly in June 2023, citing service partner issues. Subsequently, the CEO and two other executives of Haru Invest were arrested for allegedly embezzling $830 million from thousands of customers, further complicating the legal landscape surrounding Lemma Technologies.

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:

Ibrahim Abdulaziz

A fervent advocate, Ibrahim shares his wealth of knowledge on crypto and blockchain technology in an engaging and informative style. He frequents places where influencers gather for his next scoop. His vision is that the decentralized nature, security features, and potential for financial inclusion will drive widespread massive crypto adoption.

Most read

Loading Most Read articles...

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

Related News

Binance
Cryptopolitan
Subscribe to CryptoPolitan