FTX Client Files Lawsuit Against Hedge Fund Over Bankruptcy Payment Dispute
A lawsuit has emerged from a former FTX customer alleging that Olympus Peak hedge fund failed to honor a bankruptcy payout agreement.
A former FTX customer, Alexander Nikolas Gierczyk, is suing hedge fund Olympus Peak, claiming that the firm is failing to pay a promised amount related to a bankruptcy claim he sold.
Gierczyk asserts that he agreed to sell a $1.59 million claim at a 42% discount under a provision that would ensure he received any excess payments should the final payout exceed the expected amount due to bankruptcy proceedings. Gierczyk's legal representatives argue that similar claims are estimated to yield up to 146% in recovery, based on recent disclosures from FTX. However, Olympus Peak has allegedly stated they will not meet their contractual obligations.
In correspondence with Gierczyk, an Olympus Peak representative contended that Gierczyk no longer retains any interest in the claim. Ariel Lavinbuk, counsel for Olympus Peak, has characterized the lawsuit as frivolous, stemming from misinterpretation of the contract.
Earlier reports highlighted that amid FTX's bankruptcy, claims were trading as low as 13 cents on the dollar.
Originally reported by Bloomberg.
