3AC Targets Terraform Labs for $1.3 Billion in Crypto Losses

3AC, once a prominent name in the cryptocurrency hedge fund sector, fell apart shortly after the collapse of Luna and TerraUSD, alongside several other major cryptocurrency firms. The British Virgin Islands court later appointed liquidators from the consulting firm Teneo to recover similar amounts from 3AC's founders, Su Zhu and Kyle Davies, as well as other entities to settle the fund’s debts.

In April, a jury convicted Terraform Labs and Kwon of fraud in a lawsuit brought by the U.S. government over the collapse of Luna.

The liquidators stated that 3AC acquired Luna for $190 million in January 2022 as part of a larger $1 billion deal involving other investment firms. A massive sell-off of TerraUSD months later led to a drastic decline in the value of Luna.