Alameda Files a Lawsuit Against Voyager Digital
- Alameda Research has sued Voyager Digital for a total of $445.8 million for its alleged involvement in the bankruptcy of FTX.
- Voyager demanded the money it lent to Alameda after filing for bankruptcy but the trading firm claims that it had already paid it in full.
- The crypto lender was paid almost $249 million in September and approximately $194 million in October followed by $3.2 million as interest.
- These funds can be recovered “on an administrative priority basis pursuant to sections 503 and 507 of the Bankruptcy Code,” read the lawsuit.
The collapse of the former multi-billion dollar crypto exchange FTX under the leadership of Sam Bankman-Fried, also known as SBF, has made headlines for weeks in several articles. The relationship between the exchange and its sister trading firm Alameda Research went against the law and many firms and investors have got caught in the same. Interestingly, FTX’s sister company, which was also founded by SBF, has filed a lawsuit against bankrupt crypto lender Voyager Digital.
According to court filings on January 30, Alameda has sued Voyager for a total of $445.8 million for its alleged involvement in the bankruptcy of FTX and its affiliates in November 2022.
Interestingly, it is important to note that the exchange had lent customer funds to the trading company, which were used for various activities, including trading. However, this was done without the knowledge of the customers, resulting in people losing money unknowingly.
Additionally, the bankruptcy of the crypto lender came four months before the bankruptcy of FTX and its affiliates. After filing for bankruptcy, Voyager demanded the repayment of all the outstanding loans that the crypto lender gave to Alameda Research. However, the trading company alleges that it had fully paid Voyager before filing for bankruptcy.
“The collapse of Alameda and its affiliates amid allegations that Alameda was secretly borrowing billions of FTX-exchange assets is widely known,” the filing reads. “Largely lost in the (justified) attention paid to the alleged misconduct of Alameda and its now-indicted former leadership has been the role played by Voyager and other cryptocurrency ‘lenders’ who funded Alameda and fueled that alleged misconduct, either knowingly or recklessly.”
The document reads that Voyager’s business model “was that of a feeder fund.” A feeder fund is an investment fund composed of money pooled by investors, which then feeds into a master fund used to invest.
Lawyers handling the case of FTX and Alameda stated that the trading company paid Voyager almost $249 million in September and approximately $194 million in October. Moreover, a $3.2 million interest payment was also made to the crypto lender.
Lawyers also added in the document that these funds can be recovered “on an administrative priority basis pursuant to sections 503 and 507 of the Bankruptcy Code” and can also be used to repay the creditors of the exchange.
The document stated that Voyager “solicited retail investors and invested their money with little or no due diligence in cryptocurrency investment funds like Alameda and Three Arrows Capital,” adding that the crypto lender “lent Alameda hundreds of millions of dollars’ worth of cryptocurrency in 2021 and 2022.”
As reported earlier in 2022, the US arm of FTX, FTX.US, was supposed to acquire the assets belonging to Voyager, but the deal was canceled when the exchange filed for bankruptcy. Finally, the world’s largest crypto exchange, Binance, received the initial green signal to acquire Voyager’s assets from US Bankruptcy Judge Michael Wiles in New York. However, the votes of creditors and final court approval are pending.
According to the data from PricePredictions, the price of the VGX token is up more than 33% in the last 24 hours after the lawsuit became public.
A crypto journalist with over 3 years of experience in DeFi, NFT, metaverse, etc. Parth has worked with major media outlets in the crypto and finance world and has gained experience and expertise in crypto culture after surviving bear and bull markets over the years.
