FTX Fights Back Against Creditor in Court: Allegations of ‘Seller’s Remorse’ Revealed
An investment firm based in London, Attestor Capital, has recently filed a lawsuit against a FTX creditor for reneging on a deal to sell two FTX accounts worth $166 million. The creditor, Panamanian company Lemma Technologies, transferred the accounts to its majority owner and president, South Korean national Junho Bang, and then agreed to sell them to Attestor in June 2023 for $58 million (35% of the initial value). However, Attestor claims that Lemma Technologies got “cold feet” and began to renegotiate the sale, citing complications with their authority to sell the claims and potential liability to Bang’s business associates.
At the time of the initial agreement, Attestor’s bid of 35% was above the typical price paid to claims holders. However, the average bid for FTX claims has steadily increased in the months following the agreement, reaching 92% as of the most recent data. This is reflective of growing confidence among investors that they will receive their money back in the FTX bankruptcy process, spurred on by rising bitcoin prices.
The suit also brings to light Bang’s involvement with Haru Invest, a South Korean crypto yield platform. Bang, along with two other executives, was arrested in February for alleged embezzlement of 1.1 trillion won (approximately $828 million) from customers. Haru Invest has suspended withdrawals and deposits, citing issues with their service provider B&S Holdings, of which Bang is the majority shareholder. The company has filed both criminal and civil suits against B&S Holdings for providing fraudulent management reports.
