TechFlow news, on October 11, according to The Block, former FTX user Alexander Nikolas Gierczyk filed a lawsuit at the U.S. District Court for the Southern District of New York, accusing hedge fund Olympus Peak of breaching an agreement regarding additional bankruptcy claim proceeds. Gierczyk reportedly transferred his $1.59 million bankruptcy claim to Olympus Peak in November 2023 at 58% of its value.
Recently, John Dorsey, a U.S. Bankruptcy Judge in Delaware, approved FTX's restructuring plan. The plan is expected to repay FTX creditors between 129% and 146% of the value claimed at the time of bankruptcy filing, in fiat currency. According to the complaint, based on this repayment ratio, Olympus Peak is projected to profit between $1.1 million and $1.4 million from Gierczyk’s claim.
The complaint states that although Gierczyk sold his claim at a discount, the agreement with Olympus Peak included an "excess claims clause." This clause was intended to entitle Gierczyk to additional compensation proportionate to any excess distribution if the bankruptcy payout exceeded expectations. However, the plaintiff's attorneys say Olympus Peak has explicitly stated it will not honor this clause.
