FTX Claims Agreement Dispute Triggers $58M Lawsuit Amid Bitcoin Rally

London-based Attestor Capital, a significant holder of FTX bankruptcy claims, has launched legal proceedings against Lemma Technologies, a company based in Panama. The dispute revolves around a failed transaction involving the sale of two FTX accounts, valued at $166 million at the time of FTX’s collapse.

Filed in New York on January 29, the lawsuit stems from an agreement struck in June 2023. Attestor, acting through Svalbard Holdings Limited, sought to acquire the accounts after emerging victorious in an auction arranged by Lemma Technologies in May 2023.

However, Lemma Technologies, which obtained the accounts on January 18, 2023, through a transfer from its majority owner, Junho Bang, ultimately backed out of the deal, prompting the current legal fracas.

FTX Claims Agreement Dispute Triggers $58M Lawsuit Amid Bitcoin Rally
The dispute stems from rising FTX claims value, Lemma’s alleged renegotiation attempt. (Credits: Getty Images)

The crux of the disagreement lies in the escalating value of the claims. Attestor Capital had agreed to purchase Lemma Technologies’ claims for approximately $58 million, constituting 35% of the accounts’ original value.

However, as the worth of FTX claims surged, with the average bid hitting 68% by the close of 2023 and soaring to 92% most recently, Lemma Technologies began to harbor reservations about the sale.

Attestor alleges that Lemma Technologies sought to renegotiate the purchase price, citing “seller’s remorse” induced by the growing confidence among investors regarding full reimbursement in the bankruptcy proceedings, partly fueled by the appreciating price of bitcoin.

FTX Claims Agreement Dispute Triggers $58M Lawsuit Amid Bitcoin Rally
Junho Bang faces legal challenges, including embezzlement charges and Haru Invest controversies. (Credits: Haru Invest)

The legal imbroglio with Lemma Technologies is not the sole legal entanglement for Junho Bang.

Alongside two other executives from Haru Invest, a South Korean cryptocurrency yield platform, Bang was apprehended by Korean authorities in February on charges of embezzling approximately 1.1 trillion won ($828 million) from customers.

Bang’s custody status remains uncertain. Haru Invest, which suspended withdrawals and deposits in June citing issues with a service provider, has also lodged a criminal complaint and initiated a civil lawsuit against B&S Holdings, accusing the latter of furnishing fraudulent management reports.

Bang is identified as the majority shareholder of B&S Holdings.

Michael Manua
Michael Manua
Michael, a seasoned market news expert with 29 years of experience, offers unparalleled insights into financial markets. At 61, he has a track record of providing accurate, impactful analyses, making him a trusted voice in financial journalism.
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