Voyager Digital slapped with $446 million lawsuit by Alameda Research
Alameda Research, the sister company of bankrupt crypto exchange FTX, is suing Voyager Digital in an attempt to recover repayments on loans made before FTX’s own bankruptcy in November 2022.
Alleged repayments of loans to Voyager
Attorneys representing FTX and Alameda have filed a $445.8 million lawsuit in a Delaware court against Voyager. This comes after Voyager filed for Chapter 11 bankruptcy in July 2022, demanding repayment of outstanding loans from FTX and Alameda.
FTX claims that these loan repayments are entitled to be recovered as they were made shortly before FTX’s own bankruptcy in November. The crypto exchange claims it paid Voyager $248.8 million in September, $193.9 million in October and an interest payment of $3.2 million in August.
The filing notes that the total amount sought could be higher if evidence of additional payments from Alameda Research to Voyager Digital is found. The lawyers also demand repayment of legal expenses.
The filing also alleges that Voyager played a role in the collapse of FTX and Alameda, calling Voyager a “feeder fund” that did “little or no due diligence” before investing money from retail clients. The exchange hopes to use any recovered funds to repay creditors.
Exclusion of Turkish subsidiaries
In a separate proposal, FTX has requested the exclusion of two of its Turkish subsidiaries, FTX Turkey and SNG Investments, from the bankruptcy proceedings. The company believes that US courts have no jurisdiction in Turkey and that customers have already started private claims against the company.
FTX had previously planned to buy Voyager out of bankruptcy before its own collapse in November 2022.
The background to FTX bankruptcy
Top crypto exchange FTX filed for bankruptcy in November 2022, when the crypto giant collapsed after running on the utility token. It affected millions of customers and investors. Charged with fraud, FTX’s founder Sam Bankman-Fried denies any wrongdoing and will stand trial in October. Meanwhile, Alameda Research CEO Caroline Ellison has pleaded guilty to fraud.
What does this mean for the crypto industry?
The outcome of this lawsuit will have significant implications for the future of both Alameda and Voyager, as well as the broader crypto industry. With the increasing number of crypto-related lawsuits and bankruptcies, it is critical for companies to ensure that they are following proper regulations and investing customer funds responsibly.
