The bankruptcy of the crypto hedge fund Three Arrows Capital has led its liquidators to seek compensation of at least $1.3 billion from Terraform Labs. The move aims to recover losses incurred after the collapse of TerraUSD and Luna tokens in 2022. This reflects the fund's intention to pursue legal action to recuperate huge financial losses sustained due to market instability. The collapse of TerraUSD and Luna tokens marked one of the most devastating events in the history of the cryptocurrency industry, leading to significant damage across the global cryptocurrency market. Currently, it remains unclear how the compensation negotiations between the liquidators and Terraform Labs are proceeding. However, this dispute brings to light the legal and economic challenges confronting the cryptocurrency industry.