FTX Client Alleges Hedge Fund Olympus Peak Underpaid Its Proceeds From Debt Sale

On Oct. 11, Bloomberg reported that FTX client Nikolas Gierczyk filed a lawsuit against hedge fund Olympus Peak, alleging that the fund purchased his debt and profited more than $1 million from the deal and didn't pay himself the full amount of the proceeds. Nikolas said he sold his $1.59 million debt to Olympus Peak last year at a “substantial discount of 42 percent. Nikolas Gierczyk said he sold $1.59 million in claims to Olympus Peak last year at a “steep discount” of 42 percent, and that FTX received approval this year for a bankruptcy reorganization plan that is expected to return between 129 percent and 146 percent of the value of the claims to its customers.In his lawsuit, Gierczyk noted that his agreement with Olympus Peak explicitly provided for the right to receive additional compensation, and that the fund has refused to honor that right. right.