Alameda Research Sues Voyager Digital to Recover 445.9M Loan Repayments

Sam-Bankman Fried´s (SBF) crypto hedge fund Alameda Research sues the doomed crypto lender Voyager Digital to get back the $445.9 million loan repayments it made before its bankruptcy filing.

According to a Bloomberg report on Tuesday, January 31^st, FTX’s sister company Alameda filed a lawsuit in a federal bankruptcy court in Delaware on Monday against Voyager. The lawsuit blames the crypto lender for its hand in the fall of the SBF crypto empire and seeks to regain the funds mentioned above.

Bankrupt Alameda demands repayment of $445.8 million in loans made to bankrupt Voyager, which previously loaned to Alameda, but was repaid after going bankrupt. Everyone owes everyone and no one has real money. https://t.co/sWSy58B4dL pic.twitter.com/91cxsql2pr

— Jacob Silverman (@SilvermanJacob) January 31, 2023

Alameda and Voyager had Deep Ties

When the crypto lender filed for bankruptcy in July 2022, the court document revealed that both companies in the discussion were deeply intertwined as early as September 2021. Alameda was one of its largest shareholders and lent and borrowed funds from Voyager.

Alameda offered a $500 million bailout to Voyager in late June while it was trying to weather the storm because of its exposure to crypto venture capital firm Three Arrows Capital (3AC). Furthermore, FTX sought to buy Voyager out of bankruptcy prior to its November collapse.

In the latest development, the lawsuit is related to cryptocurrency loans the crypto lender provided to Alameda before its bankruptcy filing in July. Voyager Digital demanded repayment of all outstanding loans to FTX and Alameda after bankruptcy protection.

According to the filing, Alameda claims it repaid all the loans. FTX made all these loan repayments on Alameda’s behalf. The crypto exchange paid Voyager a $3.2 million interest payment in August, $248.8 million in September, and $193.9 million in October. In total, $445.9 were paid to the lender.

As these loan repayments were made after Voyager’s Chapter 11 filing, they are eligible to be clawed back and potentially used to repay other FTX creditors. The filing reads:

“This Adversary Proceeding seeks to recover those funds preferentially transferred to Voyager prior to the Alameda Petition Date for the benefit of Alameda’s creditors. The preferential transfers were made after the commencement of the Voyager Chapter 11 Cases and are therefore recoverable by Plaintiff on an administrative priority basis pursuant to sections 503 and 507 of the Bankruptcy Code.”

The plaintiffs also demand the recovery of additional funds it might discover as the case moves forward and legal fees.

The lawsuit also alleged Voyager Digital for its role in the downfall of FTX empire. They called the lender a “feeder fund” that “solicited retail investors and invested their money with little or no due diligence.”

UK Investigates Charity Linked to FTX

The Charity Commission of England and Wales has opened an investigation into Effective Ventures Foundation, a charity platform with FTX as a major donor.

We’ve opened an inquiry into Effective Ventures Foundation following the bankruptcy of a significant funder.

Read more: https://t.co/zjH1TdysYf pic.twitter.com/Qda9I0YwVP

— Charity Commission (@ChtyCommission) January 30, 2023

According to the investigator:

“There is no indication of wrongdoing by the trustees at this time. However, there are indications of potential risks to the charity’s assets, and the inquiry has been opened to establish facts and help ensure the trustees protect the charity’s assets and are running the charity in line with their duties and responsibilities.”

As reported, FTX was also under surveillance in Australia months before its collapse.