VoyagerDigitalthe cryptocurrency lending company that went bankrupt due to the crypto business chain crash that started with the insolvency of Three Arrow Capital (3AC), is currently fighting his bankruptcy court battle. Court proceedings and financial documents have shown a deep relationship between the crypto lending firm and Alameda Research, owned by Sam Bankman Fried..
Alameda is a quantitative trading firm that was also one of the many Voyager borrowers, reportedly owing $370 million. Nevertheless, Within weeks of 3AC’s collapse, Alameda switched from borrower to lender, offering a $500 million bailout in late June..
SBF took to Twitter to weigh in on the bailout deal that ultimately became the sticking point for Voyager. The legal team of the troubled lender claimed that the CEO was trying to create leverage for the operation..
1) Voyager lost customer assets, but it still has the majority left.
Why haven’t those been returned to customers yet?
Sad facts from a bankruptcy process.
— SBF (@SBF_FTX) July 25, 2022
1) Voyager lost customer assets, but still has most of them.
Why haven’t they been returned to customers yet?
Sad data of a bankruptcy process.
Legal and financial documents indicate that ties between the two companies were already in place by September 2021. The same documents also indicate that Alameda initially borrowed much more than the current amount of $370 million. Voyager’s financial books indicate that it lent $1.6 billion in crypto loans to an entity based in the British Virgin Islands, the same place where Alameda is registered..
Legal documents verifying Voyager’s loan to 3AC also show a “Counterparty A” registered in the British Virgin Islands, owing them $376.784 million. In their bankruptcy filing, Voyager has shown that Alameda owes them $377 million..
Alameda was also Voyager’s largest shareholder., with a participation of 11.56% in the company acquired through two investments for a combined total of $110 million. When he completed the $500 million bailout, his investment was worth $17 million. Earlier this year, Alameda divested 4.5 million shares to avoid disclosure requirements, reducing its stake to 9.49%..
Voyager CEO Stephen Ehrlich said Following bankruptcy, many cryptocurrency holders on the platform would potentially be eligible to repossess some of their assets along with common stock in the reorganized Voyager, Voyager tokens, and proceeds from the now-defunct loan to 3AC..
As part of this process, the proposed Plan of Reorganization would resume account access and return value to customers. Under this Plan, which is subject to change given ongoing discussions with other parties, and requires Court approval:
— Stephen Ehrlich (@Ehrls15) July 6, 2022
As part of this process, the proposed Plan of Reorganization would resume access to accounts and return value to customers. Under this Plan, which is subject to change given ongoing discussions with other parties, and requires Court approval:
The cryptocurrency on-chain crash began with the now-defunct stablecoin TerraUSD (UST)which ended up causing the collapse of the ecosystem of 40,000 million dollars. Many crypto hedge funds and lending firms exposed to Terra lost millions of dollars, later leading to the insolvency of 3AC, followed by the downfall of crypto leaders like Celsius, BlockFi, Hodlnaut, and Voyager..
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