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ThecoinrepublicCryptoFTX sues Voyager Digital: Retrieval of $446...
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FTX sues Voyager Digital: Retrieval of $446 M loan payments from 2022

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  • Voyager filed for bankruptcy in July 2022 and asked for repayments of outstanding loans.
  • FTX, on Alameda’s behalf, paid an amount in installments.
  • The timing of their filing in November makes them eligible for retrieval.

2022 was a bad year for the crypto industry, as many big players either filed for bankruptcy or are struggling to stay afloat amidst the stormy conditions in the market. Recently the bankrupt crypto exchange FTX sued crypto lender Voyager Digital on Monday, January 30, 2023, to retrieve $445.8 million in loan repayment made by FTX before their collapse. 

FTX and Voyager Digital

Both crypto entities made it to the list of bankruptcy in 2022, while Voyager filed for bankruptcy on July 6, 2023; they demanded repayments of all the outstanding loans provided to FTX and Alameda Research. As per the court filings on Alameda’s behalf, FTX paid $248.8 million in September 2022 and $193.9 million in October 2022, while a $3.2 million interest payment was made in August by FTX. 

These payments were made around the time of their bankruptcy filing, making them eligible to claw back the amount, which could then be used to repay the FTX creditors. Once the third largest crypto exchange vanished one day after filing bankruptcy on November 11, 2023, shaking the whole industry to its roots. The incident left roughly 9 million customers and some investors facing billions of dollars in losses. 

The whole year of 2022 was difficult; However, FTX portrayed itself stable enough to weather the storm and the conditions that affected Voyager; it even went on to buy the crypto lender in a bankruptcy auction; everything changed when they themselves had to file for chapter 11 bankruptcy. 

Through the court filings on Monday, FTX does acknowledge the allegations of Alameda hampering FTX customer assets to cover their risky business of lending and borrowing. Also, Voyager and other lenders, intrigued by Alameda’s conduct, “knowingly or recklessly” pushed their clients’ assets toward Alameda. 

The filing further says that:

“Voyager’s business model was that of a feeder fund. It solicited retail investors and invested their money with little or no due diligence in cryptocurrency investment funds like Alameda and Three Arrows Capital.”

What’s new on the FTX-saga?

Sam Bankman-Fried, as expected, pleaded not guilty to all eight counts of wire fraud and conspiracy. At the same time, Alameda’s CEO Caroline Ellison and ex-CTO Gary Wang had pleaded guilty to the charges and would supposedly be working as witnesses against FTX and SBF. The prosecutors have started a website for all the victims of the FTX collapse to come forward and share their stories, which could then be used as testimonies against the culprit. The hearing is supposed to start on October 2, 2023.

 

Disclaimer

The contents of this page are intended for general informational purposes and do not constitute financial, investment, or any other form of advice. Investing in or trading crypto assets carries the risk of financial loss. The forecasted data (also called “price prediction”) on this page are subject to change without notice and are not guaranteed to be accurate.

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Ahtesham Anis
Ahtesham Anis
Ahtesham Anis is a Computer Science undergrad student currently based out of India. Coming from the business background and his keen interest in Cryptocurrency and Blockchain technology is what Ahtesham brings to the table. He is always an eager learner when it comes to exploring the new technologies and topics in the crypto world.
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