FTX’s Top Attestor Sues Seller Amid Bitcoin Rally

Attestor Capital, a London-based hedge fund, has filed a lawsuit against Lemma Technologies, a claim seller, as part of the ongoing fallout from the collapse of the FTX exchange. Attestor, which specializes in distressed assets and private equity, is one of the largest buyers of FTX’s bankruptcy assets, alongside Silver Point Capital and Diameter Capital Partners. According to claims market data, Attestor purchased over $400 million worth of FTX claims, making a substantial profit. It is now alleging that Lemma Technologies reneged on a deal to sell FTX claims to Attestor for $58 million in June 2023 and decided to keep the claim for itself instead, an action Attestor sees as “seller’s remorse.”

Lemma Technologies, a Panama-based company, has not provided its side of the story regarding the lawsuit and has not filed a defense against Attestor’s suit in New York. Lemma’s lawyers have stated that they will not proceed with the transactions or honor the trade confirmations unless legally compelled to do so. At the time of publication, Attestor and Lemma had not responded to requests for comment regarding the lawsuit.

In addition to the lawsuit, Lemma Technologies’ principal investor, Junho Bang, is facing legal issues in South Korea. Bang is accused of stealing digital assets from the collapsed crypto lending firm Haru Invest and was indicted by South Korean authorities after being arrested in January. Haru Invest, which promised investors a yearly return of 12% on cryptocurrency deposits, abruptly suspended withdrawals in June 2023 due to service partner issues. The CEO and two other executives of Haru Invest were subsequently arrested for stealing $830 million from thousands of customers.

The collapse of the FTX exchange has sparked a flurry of legal battles and financial disputes among various parties involved. Attestor Capital’s lawsuit against Lemma Technologies is just one example of the ongoing fallout from the collapse. As FTX claim holders seek to recoup their investments, these legal battles are likely to continue playing out in the bankruptcy claims market.

Leave a Reply