Voyager Digital Slammed with $446M Lawsuit by Alameda Research

The post Voyager Digital Slammed with $446M Lawsuit by Alameda Research appeared first on Coinpedia Fintech News

Alameda Research, the sister company of bankrupt crypto exchange FTX, is suing Voyager Digital in a bid to recover loan repayments made prior to FTX’s own bankruptcy in November 2022.

Alleged Loan Repayments to Voyager

Lawyers representing FTX and Alameda have filed a lawsuit in a Delaware court for $445.8 million against Voyager. This comes after Voyager filed for Chapter 11 bankruptcy in July 2022 and demanded the repayment of outstanding loans from FTX and Alameda.

FTX claims that these loan repayments are eligible to be recovered as they were made shortly before FTX’s own bankruptcy in November. The crypto exchange alleges that it paid Voyager $248.8 million in September, $193.9 million in October, and a $3.2 million interest payment in August.

The filing notes that the total amount being sought could go higher if evidence of more payments from Alameda Research to Voyager Digital is found. The lawyers are also seeking the repayment of legal fees.

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 its creditors.

Exclusion of Turkish Subsidiaries 

In a separate motion, FTX has requested the exclusion of two of its Turkish subsidiaries, FTX Turkey and SNG Investments, from the bankruptcy proceedings. The company believes that U.S. 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 Backstory of FTX Bankruptcy

The top crypto exchange FTX filed for bankruptcy in November 2022, when the crypto giant collapsed after a run on its utility token. It affected millions of customers and investors. Indicted on fraud charges, FTX’s founder Sam Bankman-Fried denies wrongdoing and will stand trial in October. Meanwhile, Alameda Research CEO Caroline Ellison has pleaded guilty to fraud.

What does this mean to 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 crucial for companies to ensure that they are following proper regulations and investing customer funds responsibly.