Quantitative trading firm Alameda Research will return an estimated $200 million to Voyager Digital, which is in bankruptcy proceedings. Alameda borrowed the cryptocurrency funds in September 2021. At the time, the sum was approaching around $380 million.
According to a recent filing in the Bankruptcy Court for the Southern District of New York, the parties have reached an agreement, and Alameda will return around 6,553 Bitcoin (BTC) and 51,000 Ether (ETH) before September 30. On his corporate Twitter account, Alameda confirmed his willingness to return the funds:
happy to return the Voyager loan and get our collateral back whenever works for voyager
— Alameda Research (@AlamedaResearch) July 8, 2022
At the same time, Voyager will have to return collateral in the form of 4.65 million FTX Tokens (FTT) and 63.75 million Serum (SRM), which is $160 million at press time. The company has been in Chapter 11 bankruptcy proceedings since July and began auctioning off its assets in September to return some of the funds to its clients.
Throughout the bankruptcy process, court proceedings and financial documents have shown a deep relationship between Voyager and Alameda. In June, when Voyager ran into trouble, Alameda switched from borrower to lender, offering a $500 million bailout. However, this caused a public conflict between the two parties, since Voyager rejected the purchase, claiming that it could “hurt customers”.
In addition, Voyager’s financial records indicate that it lent $1.6 billion in cryptocurrency to an entity based in the British Virgin Islands, the same place where Alameda is registered. At the same time, Alameda was also Voyager’s largest shareholder, holding an 11.56% stake in the company acquired through two investments for a combined $110 million. Earlier this year, Alameda divested 4.5 million shares to avoid reporting, reducing its stake to 9.49%.
Like several other cryptocurrency lenders and platforms, such as Celsius, BlockFi, and Hodlnaut, Voyager struggled to continue operations following the global cryptocurrency market crash in early summer 2022.
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