Californian Investor Sues Olympus Peak Over FTX Deal, Alleges Millions Lost

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A lawsuit has been filed against popular hedge fund Olympus Peak by a Californian FTX investor, named Nikolas Gierczyk. The legal dispute has attained tremendous attention, as the investor alleges that he was underpaid by the hedge fund for his $1.59 million FTX bankruptcy claim. Let’s dive into the details of the dispute!

FTX Investor’s Initial Deal with Olympus Peak

It was last year that the initial deal between Olympus Peak and the Californian investor took place. The deal enabled the hedge fund to acquire the investor’s FTX bankruptcy claim at a steep discount of 42%. Was the investors underpaid? To understand that, you need to know what the FTX bankruptcy reorganisation plan entails.

What’s FTX Bankruptcy Reorganisation Plan? 

The bankruptcy plan of FTX, a collapsed cryptocurrency exchange, was recently approved by a US Bankruptcy Judge, John Dorsey. The company aims to repay almost 98% of customers who held $50,000 or less. It plans to repay customers between 129% and 146%. The effective date of the plan has not yet been set. Anyway, customers are expected to receive the payment within sixty days after the effective date.  

Notably, what the company is offering now as repayment to customers is significantly higher than what was expected earlier. 

This explains why the Californian investor is unhappy with the discount deal he made with the hedge fund a year ago.

Californian Investor’s Lawsuit Against Olympus Peak: What He Wants

Gierczyk wants Olympus Peak to pay him more, considering the larger return the hedge fund is expected to make with his FTX claim. The hedge fund stands to make as much as $1 million using the claim deal. 

In conclusion, if this lawsuit prompts others who made similar deals with Olympus Peak to come forward with underpayment allegations, it could once again drag the name of FTX to a prolonged legal battle and give the hedge fund a tough time. 

Stay tuned to Coinpedia for more fascinating stories related to the FTX bankruptcy deal!