The Algorand Foundation has filed a claim against Three Arrows Capital (3AC)
1 min read
Tweet from a 3AC creditor: https://twitter.com/DrSoldmanGachs/status/1548922056909389824
Context from Algorand:
https://twitter.com/AlgoFoundation/status/1548983080211423233
“Last September, the Algorand Foundation entered a one-off OTC trade with 3AC. We have reason to believe 3AC violated the associated lockup terms and as such are seeking remuneration per the terms of the agreement. The Algorand Foundation never provided 3AC with unsecured loans or a line of credit.”
Top comment from /r/AlgorandOfficial summing it up
Foundation sold algos to 3ac at a discount to the market price. In return the algos were to be locked up, probably for 2 years.
Foundation has already received the money.
Foundation is claiming 3ac did not hodl the algos and smashed the market with them (probably because they needed funds desperately when they were getting liquidated everywhere, and the algos weren’t hard-locked by smart contract) and are claiming damages.”
This is possibly one of the reasons why the price of ALGO has been getting obliterated (in addition to the greater macro environment etc.).
submitted by /u/archer4364
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