The post Voyager in Legal Battle Over $445M Loan Repayments from Alameda appeared first on Coinpedia Fintech News
Bankrupt crypto lender Voyager and bankrupt crypto exchange FTX have reached an interim agreement on $445 million of disputed loan payments, according to filings from Wednesday. Alameda Research, the trading arm of FTX, filed a suit in January to claw back some loan repayments made to Voyager before its own bankruptcy filing. Under the deal, Voyager will keep hold of the disputed funds pending resolution by court order or a final settlement.
FTX Seeks No Less Than $445.8 Million
In the January filing, Alameda requested that a court award it “no less than $445.8 million (plus the value of any additional avoidable transfers Plaintiff learns,” and any additional fees incurred. The Voyager estate will also continue to hold another $5 million deposit from FTX without use or distribution “until ownership of that deposit is litigated in the New York Bankruptcy Court and decided by settlement or a final and unappealable order, including any appeals therefrom,” Wednesday’s filing said.
During the Wednesday court hearing, lawyers for Voyager said a plan to sell the bankrupt lender’s assets to Binance’s U.S. arm was underway, with 97% of creditors voting in favor of the sale. The deal is valued at $1.02 billion and would involve Binance.US acquiring Voyager’s assets. However, the deal has been met with opposition from regulators, including the Securities and Exchange Commission and New York’s Department of Financial Services, who have filed objections to the deal.
FTX’s Bankruptcy Proceedings Continue
FTX’s own bankruptcy proceedings are continuing at a Delaware court. The company filed for bankruptcy in November 2021 after it was forced to liquidate a portfolio of insolvent assets in the wake of China’s crackdown on the crypto industry. FTX is seeking to reorganize its debt under Chapter 11 of the U.S. Bankruptcy Code.
Interim Agreement Provides Breathing Room for Voyager and FTX
The interim agreement provides breathing room for both Voyager and FTX as they continue to navigate their respective bankruptcies. It also highlights the complexities of dealing with loan repayments and ownership disputes in the unregulated crypto industry. The outcome of both bankruptcies remains uncertain, and it is unclear when or if creditors will be fully repaid.
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