Defunct crypto trading firm and FTX sister, Alameda Research, has filed a $446 million lawsuit against Voyager Digital, a bankrupt crypto broker. As it stands, Alameda is seeking to recoup the massive sum by paying back loans to the troubled digital asset manager.
Alameda filed the loan complaint against Voyager this month in the U.S. Bankruptcy Court for the District of Delaware. According to FTX’s sister company, Voyager made the loans before its bankruptcy in July of last year. In addition, Voyager sought repayment of all outstanding loans to Alameda, which the crypto trading company says it has paid in full. In Alameda’s court filing, it fully repaid the outstanding loans before filing for insolvency alongside FTX.
The filing reads in part as follows:
“The collapse of Alameda and its affiliates amidst allegations that Alameda was secretly borrowing billions of FTX exchange assets is widely known.”
In addition, the court document also reads:
“The (justifiable) focus on the alleged misconduct of Alameda and its now-accused former executives has largely lost sight of the role played by Voyager and other crypto-currency “lenders” who funded Alameda and fueled this alleged misconduct, either knowingly or recklessly.”
Alameda’s court document also refers to Voyager Digital’s business model as “feeder fund“.
According to the court document, the crypto lending platform solicited retail investors and invested their money without due diligence in crypto funds. These crypto investment funds include Alameda and the defunct crypto hedge manager Three Arrows Capital (3AC). “To that end, Voyager has loaned Alameda hundreds of millions of dollars of crypto currency in 2021 and 2022“, the filing concludes.
Alameda details paper trail of payments in Voyager lawsuit
Alameda detailed its payment scheme to Voyager in the document. The trading company paid approximately $249 million in September and approximately $194 million in October. In addition, Alameda remitted a $3.2 million interest payment in August to Voyager Digital.
FTX attorneys, who filed the complaint on behalf of Alameda, say the previously paid funds are recoverable. In addition, the legal team also stated that these funds “recoverable“could be used to pay off FTX’s own creditors.
FTX’s U.S. arm, FTX.US, had planned to acquire Voyager Digital after winning the $1.46 billion tender offer in September. However, the U.S. stock market division’s intentions never materialized, as FTX suddenly collapsed the following month.
A day before FTX filed for bankruptcy last November, reports revealed that the troubled exchange had lent funds to its customers to prop up Alameda. Furthermore, when FTX was considering a buyout of Voyager, Alameda was one of the crypto-currency broker&squor;s shareholders. Nevertheless, Alameda’s lawsuit against Voyager comes after the troubled crypto-currency brokerage platform received initial court approval to divest certain assets to Binance.US. According to various reports, Voyager’s deal with Binance’s US arm is worth around $1 billion. In addition, reports also indicate that Voyager users could get about half of their assets back as part of the deal. However, the deal still needs another court hearing to become final.