Alameda sues Voyager Digital to recover $445 million

abdelaziz Fathi

FTX’s failed trading arm, Alameda Research, asked a court to claw back $445 million from Voyager Digital, which it said SBF’s empire paid to the crypto lender before collapsing into bankruptcy.

Sam Bankman-Fried

In a court filing, FTX lawyers said the hedge fund paid Voyager $249 million in September and $194 million a month later, which were preceded by a $3.2 million interest payment in August.

Alameda Research seeks to recover those loan payments from the troubled digital asset manager since they were made close to FTX’s bankruptcy filing. Under certain circumstances, federal laws consider such payments eligible to be ‘recoverable’ and thus could be used to repay FTX’s own creditors.

“The collapse of Alameda and its affiliates amid allegations that Alameda was secretly borrowing billions of FTX-exchange assets is widely known. 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 fuelled that alleged misconduct, either knowingly or recklessly,” FTX’s complaint states.

In September 2021, Voyager secured a credit facility close to $380 million from the quant trading firm. Then in June 2022, the US broker entered into an agreement with Alameda Ventures to extend the previous credit facility, which was intended to help it meet customer liquidity needs.

Bankman-Fried-led Alamada offered to extend a credit line of $200 million in cash and USDC alongside a 15,000 BTC revolver. The move came just a few days after Alameda provided the same type of a loan to crypto lender BlockFi, citing the need to meet customer liquidity requirements in these challenging times.

Nevertheless, the US dollar value of Alameda’s loans have almost halved as the loan was denominated in crypto tokens rather than fiat money.

The news comes a few weeks after Alameda criticized Binance’s $1 billion acquisition deal, saying the proposal “ignores fundamental requirements and protections of the Bankruptcy Code.”

Voyager defended its plan to sell assets to Binance.US and responded to objections raised by the US state and federal regulators. In a separate filing, the bankrupt crypto lender described the claims of Alameda Research as “hypocrisy and chutzpah based on unverified speculation.”

Voyager explains that Binance.US’ bid is structurally similar to the FTX US’ proposal. Binance had emerged before as one of the highest bidders for Voyager Digital’s assets. Following FTX’s collapse, Voyager reopened the bidding process and its board was reportedly in active discussions with alternative bidders.

Read this next

Industry News

Horizon Software rebrands to Horizon Trading Solutions

“Horizon Trading Solutions has seen accelerated global growth over the past year to meet the rising demand for our trading solutions and built-for-purpose technology offering. The choice to rebrand represents a key part of this development, while maintaining our heritage and history in the industry.”

Market News

USDJPY has surged to levels last witnessed in 2022. Should we consider opening a short position?

The recent resurgence of the US dollar has propelled USD/JPY to new heights, touching levels not seen since 2022. This surge comes against the backdrop of stable short-term yields and ongoing economic data that fails to signal a significant slowdown, prompting questions about the extent of current monetary easing measures.

Digital Assets

DED Trends on Twitter After Memecoin Snapshot Announcement

Polkadot-backed community coin #DED, made it to the trending charts on X, demonstrating community’s engagement and interest behind the memecoin. 

Digital Assets

BlockDAG Presale Nears $10 Million Amid Toncoin’s Momentum, Green Bitcoin’s Presale, and the Rise of Other Top Cryptos

This article will examine three top trending topics: Toncoin’s potential, Green Bitcoin’s innovative presale, and BlockDAG’s sustainable mining approach. These cryptocurrencies take centre stage for their uniqueness and innovation.

Digital Assets

Coinbase scores minor victory vs SEC, but lawsuit to proceed

A federal judge in Manhattan, U.S. District Judge Katherine Polk Failla, ruled on Wednesday that the U.S. Securities and Exchange Commission’s (SEC) lawsuit against Coinbase can largely proceed.

Web3

COTI Teams Up with Civic for Enhanced Digital Identity Control

СOTI and Civic are teaming up to enhance digital identity security in Web3, aiming to provide users with more control over their digital selves through innovative technology.

Digital Assets

BlockDAG Takes on Chainlink (LINK) Crypto, and RON With DeFi Card and 5000x Profit Potential

Explore BlockDAG’s innovative DeFi card, which transforms cryptocurrency into spendable cash, alongside Chainlink (LINK) crypto and Ronin’s advancements.

Digital Assets

Court finally decides on Sam Bankman-Fried sentence, experts predict 20 years

Sam Bankman-Fried, the former CEO of the now-defunct cryptocurrency exchange FTX, is set to face sentencing on Thursday in a pivotal moment that could see the entrepreneur beginning a lengthy period in federal prison.

Crypto Insider

DeFi Winter Thaws: A Look at the Emerging Landscape

The past year has seen a significant shift in the Decentralized Finance (DeFi) market, transitioning from a period of decline (“DeFi winter”) to a potential season of growth.

<