Complaint seeking return of approximately 58 billion yen
Alameda Research, a bankrupt crypto asset (virtual currency) investment company, filed a complaint with the bankruptcy court in the state of Delaware on the 30th, seeking the return of approximately 58 billion yen ($445.8 million) to Voyager Digital.
Voyager Digital filed for bankruptcy in Chapter Eleven in July 2022 following a chain of defaults in the cryptocurrency market. Then in November, Alameda Research also filed for bankruptcy as one of the failed FTX Group companies.
After Voyager filed for bankruptcy, Alameda paid off all outstanding loan balances owed by Voyager, according to the complaint. Some of these loans had not yet matured when Voyager requested repayment, the people said.
In 2022 court documents, Voyager has lent Alameda Bitcoin (BTC), Ethereum (ETH), Dogecoin (DOGE), USD Coin (USDC) and others, with FTX’s proprietary He said he owns tokens FTT and Serum (SRM).
Alameda paid off these loans in the form of Bitcoin, Ethereum and other cryptocurrencies before it filed for bankruptcy, according to the complaint.
Attorneys for Alameda said at this time they could not determine whether the FTT, SRM, etc. that Voyager claims to be collateral for the loan were actually related to Alameda’s debts to Voyager.
Alameda’s claims seek the return of those funds transferred to Voyager for the benefit of Alameda’s creditors. Legal points include that the transfer was made within 90 days of the date Alameda filed for bankruptcy, and that Alameda was already insolvent at the time of the transfer.
Alameda’s preferential remittance to Voyager has reduced the amount of assets expected to be received by Alameda’s other creditors.
Chapter 11 of the U.S. Bankruptcy Code (Chapter 11)
A reconstruction-type bankruptcy legal system similar to the Civil Rehabilitation Law of Japan. While continuing management, we will reduce debts and restructure the company. Debt collection will be suspended after the application, and the debtor will work on debt consolidation and formulate a reconstruction plan within 120 days in principle.
Criticism of Voyager
In its complaint, Alameda accused Voyager of irresponsible lending.
Voyager’s business model was to solicit individual investors and lend their money to the likes of Alameda and 3 Arrows Capital (3AC). But Voyager invested with little due diligence at the time.
In addition to Alameda’s misappropriation of FTX’s customer funds, Alameda’s attorneys allege that the improper business practices of these affiliates also contributed to Alameda’s conduct.
Situation surrounding Alameda
Former Alameda CEOs pleaded guilty in December 2022. It is a form of admitting seven indictments, including “wire fraud against FTX customers and money lenders to Alameda,” “collusion in commodity trading fraud,” and “collusion in securities trading fraud.”
Relation: Alameda’s former CEO Ellison and others admit criminal responsibility
On December 28, it was confirmed that the tokens stored in a cryptocurrency wallet related to Alameda Research were sent to an external party and converted to Bitcoin through a mixing service.
Former FTX CEO Sam Bankman-Fried, who is now under regulatory oversight, said he did not have access to the account and was not involved in the transfer.
Bloomberg reports that US authorities are expected to launch an investigation into the money transfer.
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