FTX sues Voyager Digital to claw again $446 million in 2022 mortgage funds

January 31, 2023

NEW YORK, Jan 30(Reuters) – Bankrupt crypt trade FTX sued crypto lender Voyager Digital on Monday, in search of to claw again $445.8 million in mortgage repayments that FTX made earlier than collapsing into chapter 11 in November 2022.

FTX and Voyager each filed for chapter amid a 2022 collapse in cryptocurrency markets, however Voyager’s chapter preceded FTX’s submitting by 4 months.

After Voyager filed in July, it demanded reimbursement of all excellent loans to FTX and its affiliate hedge fund Alameda Analysis.

FTX mentioned in a court docket submitting that on Alameda’s behalf, it paid Voyager $248.8 million in September and $193.9 million in October. FTX additionally made a $3.2 million curiosity cost in August, in keeping with its court docket filings.

As a result of these mortgage funds had been made so near FTX’s personal chapter submitting, they’re eligible to be clawed again and doubtlessly used to repay different FTX collectors, in keeping with FTX’s criticism.

FTX, as soon as among the many world’s prime crypto exchanges, shook the sector in November by submitting for chapter, leaving an estimated 9 million clients and different traders dealing with losses within the billions of {dollars}.

Its founder Sam Bankman-Fried has been indicted on fraud prices, and a number of other prime executives, together with Alameda Analysis CEO Caroline Ellison, have pleaded responsible to fraud. Bankman-Fried has denied wrongdoing and is scheduled for trial in October.

FTX initially appeared to climate the storm that introduced down Voyager and different crypto companies in summer season 2022, presenting itself as a “white knight” that would stabilize reeling crypto markets. FTX provided to purchase Voyager’s platform in a chapter public sale, however the proposed acquisition fell aside when FTX imploded in November.

In its Monday court docket submitting, FTX acknowledged the allegations that Alameda raided FTX buyer property to cowl its dangerous borrowing and lending. But it surely mentioned Voyager and different crypto lenders had been complicit in Alameda’s conduct, “knowingly or recklessly” pushing their purchasers’ property towards Alameda.

“Voyager’s enterprise mannequin was that of a feeder fund,” FTX mentioned. “It solicited retail traders and invested their cash with little or no due diligence in cryptocurrency funding funds like Alameda and Three Arrows Capital.”

Three Arrows Capital additionally went bankrupt in 2022, and its founders have refused to cooperate with court-appointed liquidators who’re making an attempt to get well property for Three Arrows clients.

Reporting by Dietrich Knauth. Modifying by Gerry Doyle

Our Requirements: The Thomson Reuters Belief Rules.

See also  Toolbox Globe Mug gamers: Complete team checklist for Qatar 2022 and also midseason pleasant routine