Key Takeaways
- As per FTX lawyers, the loan repayments are eligible to be returned as they were made so close to FTX’s bankruptcy filing in November.
- FTX, on behalf of Alameda Research, claims that it paid the crypto lender $248.8 million in September and $193.9 million in October
Bankrupt FTX’s sister trading company Alameda Research has sued crypto lender Voyager Digital for $445.8 million loan payment in a Delaware court on January 30.
In 2022, FTX and Voyager both filed for bankruptcy, citing unfavorable market conditions. However, Voyager filed for bankruptcy in July, while FTX filed for Chapter 11 bankruptcy protection in November.
Following Voyager’s bankruptcy filing, it demanded repayment of all outstanding loans to FTX and its sister trading firm Alameda Research. According to FTX lawyers, these loan repayments are eligible to be returned as they were made very close to FTX’s own bankruptcy filing in November.
As per court filings, FTX, on behalf of Alameda Research, claims that it paid the crypto lender $248.8 million in September and around $193.9 million in October. FTX noted it also made a $3.2 million interest payment in August
In the lawsuit, FTX also raised serious allegations against Voyager Digital. While FTX acknowledged Alameda raided FTX customer assets to cover its risky borrowing and lending
It also alleged that Voyager along with other crypto lending firms were complicit, “knowingly or recklessly,” in funneling customer funds toward Alameda with “little or no due diligence.
“Voyager’s business model was that of a feeder fund,” the exchange stated. “It solicited retail investors and invested their money with little or no due diligence in cryptocurrency investment funds like Alameda and Three Arrows Capital,” FTX claimed.
Following Voyager’s bankruptcy filing in September, FTX US secured the winning bid for the assets of embattled Voyager Digital with a bid of approximately $1.4 billion. The deal, however, did not materialize.
In the bankruptcy filing, FTX had stated it has over 100,000 creditors, assets in the range of $10 billion to $50 billion, as well as liabilities in the range of $10 billion to $50 billion.FTX Founder Bankman-Fried, who resigned as FTX’s CEO in mid-November when the exchange filed for bankruptcy protection, is now on bail facing charges including money laundering and wire fraud, to which he has pleaded not guilty.
