Crypto Clash: FTX Leading Claim Holder Attestor Takes Legal Action Amid Bitcoin Surge

The FTX exchange keeps falling apart, and now there’s a legal showdown in the bankruptcy claims scene. Attestor Capital, a big FTX claim owner, is suing another claim seller.

Attestor, a hedge fund headquartered in London, specializes in buying distressed assets and investing in private equity. Alongside Silver Point Capital and Diameter Capital Partners, the firm has become one of the major purchasers of FTX’s assets in bankruptcy.

As of February, Attestor was the top buyer of FTX claims, having acquired a minimum of $400 million, per data from the Claims Market.

The combined holdings of the six leading FTX claim holders. Source: Claims Market by Cherokee Acquisition.

Bloomberg reported on Mar 18 that Attestor, having earned a 200% profit from its FTX claims, has taken legal action against Lemma Technologies, the seller of one of the largest FTX accounts it bought.

Attestor said Lemma said okay to sell FTX claims to us for $58 million back in June 2023. However, we reconsidered the deal when cryptocurrency prices skyrocketed. Bitcoin, for instance, went up almost 130% over the last year, as I’m speaking now.

Lemma, a Panamanian company, held onto the claim instead of giving it up. According to reports, the Attestor stated in the lawsuit that this decision showed “seller’s remorse.” Bloomberg reports that Lemma hasn’t publicly spoken out about their side of the story and hasn’t responded to the Attestor’s lawsuit in New York.

FTX Faces Legal Turmoil Amidst Controversy

Lemma’s lawyers said they won’t go through with the deals or respect the trade confirmations unless they have to do so by law.

While facing a fresh lawsuit in New York, Lemma encounters additional legal complications in South Korea involving one of its pivotal figures.

Lemma’s principal investor, Junho Bang, is accused of appropriating digital assets from the collapsed cryptocurrency lending firm Haru Invest. Reports suggest South Korean authorities indicted him after his arrest in Jan.

Haru Invest previously operated a cryptocurrency yield platform, pledging a 12% annual return on cryptocurrency deposits to investors. However, withdrawals were abruptly halted in June 2023, citing service partner issues.

Subsequently, South Korean prosecutors apprehended Haru Invest’s CEO and two other executives on charges of embezzling $830 million from thousands of customers.

Related Reading | Crypto Titans: Arbitrum Whales Shift $58M Amid Token Unlock Surge

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