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- Lemma Technologies has backed down from a bankruptcy deal over an FTX distressed asset.
- Lemma refused to continue transacting with Attestor following the skyrocketing value of an acquired asset.
- Attestor has filed for the Court to compel Lemma to proceed with the transaction.
Lemma Technologies, a Panamanian firm controlled by an embattled South Korean trader, has backed down from a bankruptcy deal over an FTX distressed asset. According to reports, Lemma refused to continue with the transaction following the skyrocketing value of the asset it acquired after FTX failed.
A Bloomberg report revealed that profits from the distressed FTX assets multiplied rapidly. Assets bought at rock-bottom prices from desperate clients of Sam Bankman-Fried are delivering about 100% of the money frozen in FTX when it failed.
In Lemma’s case, the firm agreed to a $58 million sell price with Attestor Ltd., a boutique London firm specializing in trading distressed assets, last June on an acquired asset. Following the rallying prices, Attestor told the court that Lemma was withdrawing from the deal due to “seller’s remorse.” Both parties expect the asset to pay up to $165 million under current market conditions.
In a court filing, Attestor claimed Lemma won’t “proceed with the transactions or otherwise honor the trade confirmations unless compelled by force of law to do so.” Lemma has since filed its defense against the suit but has yet to provide details of its side of the story to the public.
Participants in the FTX bankruptcy process consider Attestor one of the biggest beneficiaries of the assets liquidation exercise. The firm purchased over $400 million worth of claims besides the ongoing transaction with Lemma. With a reputation of hardly backing down on legal battles, users expect Attestor to proceed with the suit against Lemma for an extended period.
Lemma has yet to comment on the court case as of the time of filing this report. According to Bloomberg, the technology firm’s principal investor, Junho Bang, is facing charges in a separate matter back in Seoul.
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