Alameda sues Voyager for $445 million
The FTX-affiliated trading firm hopes to recover funds it was loaned shortly before bankruptcy. It attributes the decision to the fact that the loan fueled management's machinations
Alameda Research, an FTX-affiliated trading firm in bankruptcy, has filed a lawsuit against previously bankrupt cryptocurrency broker Voyager Digital seeking $445.8 million, court documents were posted on the Kroll law firm's website on Jan. 30.
Alameda Research is one of more than a hundred FTX-related organizations that filed for protection from creditors last November. Alameda suffered losses in May and June 2022 from deals that included a $500 million loan agreement with Voyager. In November, reporters discovered that FTX exchange head Sam Bankman-Fried had transferred at least $4 billion from FTX funds, which include customer funds, to Alameda to support it after losses from those deals.
According to court documents, Alameda repaid all debts to the cryptocurrency lender, paying it $248.8 million in September, $193.9 million in October, and $3.2 million in interest in August.
But because those payments were made shortly before the bankruptcy filing, they can be returned to Alameda and then used to pay off other obligations of the FTX group, lawyers said, citing Section 547 of the U.S. Bankruptcy Code. That provision allows for challenges to payments made by an insolvent bankrupt during the 90 days preceding the filing of his bankruptcy petition.
According to Alameda's lawsuit, the amount requested for repayment from Voyager represents payments on loans. The company made them after the cryptocurrency lender itself filed for bankruptcy in early July. According to Alameda's lawyers, the loans from Voyager contributed to the "misconduct" of Alameda's former management.
But there has been little coverage of the role of Voyager and other cryptocurrencies 'lenders' who financed Alameda and fueled these alleged violations," the document said.
The total amount Alameda attorneys want to recover could increase if the evidence is found of additional payments by Alameda to Voyager. The company is also seeking legal fees from the cryptocurrency lender.
In December, Voyager Digital chose cryptocurrency exchange Binance.US as the buyer of its assets. The decision was made during the bidding process, with Wave Financial and cryptocurrency trading platform Cross Tower participating in addition to Binance. In January, the cryptocurrency broker received court approval for the deal with Binance US.
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