💎 Fed’s first rate cut since 2020 set to trigger market. Find undervalued gems with Fair ValueSee Undervalued Stocks

Alameda Research Sues Voyager Digital, Seeks to Recover $446 Million in Crypto Paid to the Lender

Published 01/31/2023, 10:20 AM
Updated 01/31/2023, 11:30 AM
Alameda Research Sues Voyager Digital, Seeks to Recover $446 Million in Crypto Paid to the Lender

Alameda Research, the sister company of the collapsed crypto exchange FTX, has filed a lawsuit against bankrupt crypto lender Voyager Digital to reclaim $446 million in loan repayments.

Alameda Research Sues Voyager for $446 Million

In a court filing dated January 30th, Alameda Research is looking to retrieve up to $445.8 million in loan repayments that FTX made before collapsing and filing for chapter bankruptcy 11 in November 2022.

According to the filing, FTX, on Alameda’s behalf, paid Voyager Digital $248.8 million in September and $193.9 million in October. The now-bankrupt crypto exchange also said it received a $3.2 million interest payment in August.

The FTX lawyers who submitted the case against Voyager Digital in a Delaware court argued that Alameda is eligible for the loan repayments because they were made so close to FTX and Alameda’s bankruptcy in November.

Alameda and Voyager Engaged in Risky Trading

In the filing, the FTX lawyers admitted that its sister firm, Alameda Research, used FTX customer deposits for risky investments and trading. However, they also apportioned blame to Voyager’s team.

According to the lawyers, Voyager and other crypto lending firms were also complicit. The filing states that Voyager “knowingly or recklessly” funneled customer funds toward Alameda with “little or no due diligence.”

On the Flipside

  • The collapse of FTX and Alameda Research continues to send shockwaves through different industries, with Effective Ventures Foundation, a U.K.-based charity, now being investigated by prosecutors.

Why You Should Care

Returning funds to Alameda Research could potentially be budgeted in the FTX funds recovery process and used to repay creditors.

Read the latest in the FTX bankruptcy case below:

SEC Probes Investment Advisors’ Use of FTX for Client Funds

Find affected creditors from the collapse in:

FTX’s Huge Creditor List Includes Some of SBF’s Close Partners

See original on DailyCoin

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.