FTX Customer Files a Lawsuit Against Hedge Fund Olympus Peak for Further Recovery
A former FTX customer named Nikolas Gierczyk has sued hedge fund Olympus Peak for allegedly owing him extra recovery. Gierczyk, from California, sold his claims from the collapsed cryptocurrency trading platform. He contends in his suit that Olympus Peak could yield more than $1 million under their contract. He then alleged that the firm refused to give effect to a negotiated provision whereby he would share in any further recovery.
According to a report by Bloomberg, Gierczyk sold his $1.59 million claim against FTX to Olympus Peak at a 42% discount, netting him $930,000. But with the approval of FTX’s reorganization plan, customers may now see between 129% and 146% of their claims. Gierczyk, therefore, wants extra compensation against what he insists he should have been entitled to – an unexpected recovery.
The reorganization plan proposed for FTX in an attempt to work out the fallout of one of the largest cryptocurrency collapses in history has given hope to creditors that they might recover more than they had initially anticipated. While specific payout percentages are not guaranteed, the positive outlook has convinced some customers, including Gierczyk, to contest prior agreements and negotiate larger pieces of the eventual payouts.
Olympus Peak, a distressed debt and special situations hedge fund has so far made no comment on the lawsuit. A ruling in the case could set a precedent on how claims are treated in the crypto space going forward, if and when unexpected recoveries arise well after settlements have been decided upon.
Harris Surpasses Biden but Trails Trump in Crypto Policy, Says Galaxy Research
In political news, U.S. Vice President and now-presidential candidate Kamala Harris is trying to position herself as more friendly to cryptocurrency than her boss, President Joe Biden. Still, she falls far behind her opponent Donald Trump in terms of industry-friendliness, at least according to Galaxy Research.
Harris has insinuated that she would make the regulatory environment friendlier for U.S.-based crypto firms. She’s more unbending on the core issues: capital gains taxes, Bitcoin mining, and self-custody of digital assets. Alex Thorn, head of research at Galaxy, says while Harris represents an optimistic path to a friendlier regulatory environment, her tax policies-most specifically her vow to roll back Trump’s cuts-could mean heavier capital gains taxes for crypto holders.
By contrast, Donald Trump is perceived as the more crypto-friendly candidate. Summing up, Thorn came to the conclusion that Trump’s policies, if revisited, would yield friendlier regulation for the crypto business in general.
