Crypto Exchange FTX Sues Voyager Digital to Recover $446M31. January 2023
• FTX’s sibling firm, Alameda Research, has filed a lawsuit against bankrupt cryptocurrency lender, Voyager Digital, in an effort to recover approximately $446 million.
• Alameda is seeking to reclaim the funds under bankruptcy laws that prevent one creditor from being favored over another.
• FTX has alleged that Voyager contributed to the exchange’s own bankruptcy filing by diverting customer cash to Alameda.
FTX, a leading cryptocurrency exchange, recently had an intriguing turn of events when its sibling firm, Alameda Research, filed a lawsuit against another bankrupt cryptocurrency lender, Voyager Digital. The lawsuit is an attempt to recover approximately $446 million from Voyager prior to its own bankruptcy filing.
The payments are related to crypto debts secured by Alameda from Voyager before the latter’s bankruptcy filing in July. According to a court filing, FTX asserted that it paid Voyager almost $249 million in September, and approximately $194 million in October on behalf of Alameda. In August, FTX also made a $3.2 million interest payment, court documents show.
Alameda is attempting to recover the monies under bankruptcy laws designed to ensure that no creditor is favored over another. Due to the proximity of those loan payments to the crypto exchange’s own bankruptcy declaration, those funds are subject for recovery and might be used to reimburse other FTX creditors.
FTX’s legal counsels are claiming that Voyager contributed to the downfall of the exchange by “knowingly or irresponsibly” diverting customer cash to Alameda. It is also worth noting that FTX had sought to acquire Voyager before it went belly up in November.
The lawsuit has highlighted the dangers of investing in the volatile cryptocurrency market, as well as the need for exchanges to be more mindful of their financial decisions. It remains to be seen if Alameda will be successful in recovering the funds, but it is clear the case has the potential to reshape the cryptocurrency industry.