London-based Firm Attestor Sees Significant Gain from FTX Bankruptcy
Attestor Ltd., a boutique distressed asset trading firm based in London, has experienced a major windfall as the value of crypto assets purchased from Sam Bankman-Fried’s FTX crypto exchange soared. The firm’s trades have become the talk of distressed investing circles as profits multiplied at an astonishing rate.
Multi-Million-Dollar Gain From FTX Bankruptcy Threatened
As the value of crypto assets rose sharply, Attestor and other market participants took advantage of the opportunity to purchase distressed assets at rock-bottom prices from clients seeking to recover their losses on Bankman-Fried’s cryptocurrency exchange, FTX.
The bankruptcy proceedings of FTX are expected to deliver investors the full amount of their frozen funds, which is estimated to be 100% of the initial investment.
However, Attestor’s hold on its share of the windfall has become uncertain. The seller of one of the largest FTX accounts purchased by Attestor, an obscure Panamanian company called Lemma Technologies, has chosen to keep the claim to itself for now.
Attestor argues in a New York court that this situation demonstrates seller’s remorse. The agreed-upon price with Lemma was $58 million, but the claim’s current value is expected to reach $165 million.
Lemma has not publicly explained its position or responded to Attestor’s lawsuit. Attestor’s legal team believes that Lemma will only honor the trade confirmations if compelled by law.
In addition, Lemma’s main investor, Junho Bang, is facing legal charges in a separate case in Seoul, South Korea.
Embezzlement Charges
In June, Attestor agreed to purchase a bundle of FTX claims from Lemma, which are believed to be among the largest. With this year’s cryptocurrency recovery and successful asset recovery efforts, these claims are now set to pay out in full.
Attestor is eager to close the deal and complete the transactions immediately. However, Junho Bang appears to be in no hurry to do so due to his involvement in the separate crypto-lender Haru Invest case.
Bang is accused of embezzling digital assets from Haru Invest and is currently facing charges by South Korean authorities. Although the Haru Invest case and Attestor’s lawsuit over FTX claims are distinct, Bang plays a central role in both matters.
During the cryptocurrency boom, Haru Invest allegedly offered high returns but eventually froze customer redemptions. The company cited issues with its service provider, B&S Holdings, which allegedly provided false information. B&S described itself as a quantitative trading company for crypto assets, including FTX’s FTT token.
The resolution of these cases will shape the outcomes for the parties involved and provide insights into the future dynamics of distressed investing in the crypto space.
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