- Attestor Capital, a major buyer of FTX bankruptcy claims, is suing Lemma Technologies over a failed claim sale.
- Attestor aimed to buy FTX claims worth $58 million from Lemma, which later backed out citing rising crypto values.
- Lemma faces legal challenges in New York and South Korea, with its principal investor indicted for digital asset theft.
Attestor Capital, a London-based investment firm known for its focus on troubled assets, has initiated legal action against Lemma Technologies. According to Bloomberg, this lawsuit stems from a disputed deal involving bankruptcy claims from the defunct exchange, highlighting the complex legal entanglements following FTX’s collapse.
A Disputed Deal Unravels
Attestor Capital had positioned itself as a prominent player in the acquisition of FTX’s bankruptcy claims, engaging in a significant transaction with Lemma Technologies. The agreement, valued at $58 million, was set to transfer a substantial FTX claim to Attestor. However, the deal fell through as Lemma retracted its commitment, attributing its change of heart to a surge in cryptocurrency market values, particularly noting Bitcoin’s notable ascent.
This reversal led Attestor to pursue legal remedies, accusing Lemma of reneging on their agreement due to “seller’s remorse.” The lawsuit, filed in New York, aims to compel Lemma to honor the original terms of the sale, as Attestor alleges that the agreement was clear and binding.
Broader Legal Challenges
The dispute between Attestor and Lemma is set against a backdrop of wider legal issues. Lemma, while contending with the lawsuit in New York, is also linked to legal troubles in South Korea. Lemma’s key investor, Junho Bang, faces allegations of misappropriating digital assets from Haru Invest, a crypto lending firm that encountered its downfall, leading to significant financial losses for its customers.
The situation underscores the intricate web of legal and financial challenges emerging from the cryptocurrency sector’s volatility, particularly in the wake of high-profile collapses like that of FTX. As Attestor Capital seeks to navigate these complexities through its lawsuit, the broader implications for the crypto industry and its stakeholders continue to unfold, highlighting the risks and uncertainties inherent in this rapidly evolving market.
