Voyager Digital reportedly had deep ties with SBF-owned Alameda Investigation

Voyager Digital reportedly had deep ties with SBF-owned Alameda Investigation
Comments Off on Voyager Digital reportedly had deep ties with SBF-owned Alameda Investigation, 11/08/2022, by , in Cryptocurrency

Voyager Digital, the crypto lending firm that went bust due to the crypto contagion initiated by A few Arrow Capital’s (3AC) insolvency is currently preventing its bankruptcy courtroom battle. The court docket proceedings and financial paperwork have revealed a deep relation in between the crypto lending agency and the Sam Bankman Fried-owned Alameda Research.

Alameda is a quantitative buying and selling organization that was also one particular of many borrowers from Voyager and reportedly owed $370 million. Nonetheless, inside of months of 3AC’s downfall, Alameda moved from a borrower to a loan company and supplied a $500 million bailout in late June.

SBF took to Twitter to give insights on the bailout deal that inevitably grew to become the point of conflict for Voyager. The troubled lender’s lawful staff claimed that the CEO was seeking to produce leverage for the trade.

Legal documents and monetary papers stage towards the ties involving the two providers as early as September 2021. The very same documents also point out that Alameda borrowed substantially additional to begin with than the latest amount of money of $370M. Voyager’s financial books reveal that it lent out $1.6 billion in crypto loans to an entity based mostly in the British Virgin Islands, the exact place exactly where Alameda is registered.

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The legal documents that verify Voyager’s bank loan to 3AC also present a “Counterparty A” registered in the British Virgin Islands, owing them $376.784 million. In its individual bankruptcy presentation, Voyager has shown Alameda owes them $377 million.

Alameda was also the major stakeholder in Voyager, with an 11.56% stake in the business obtained via two investments for a put together overall of $110 million. When it accomplished the $500 million bailout, its investment was well worth $17 million. Previously this 12 months, Alameda surrendered 4.5 million shares to prevent reporting necessities, bringing its fairness down to 9.49%.

Voyager CEO Stephen Ehrlich claimed that after the bankruptcy court docket proceedings, numerous crypto holders on the platform would be possibly eligible to get back some of their property along with common shares in the reorganized Voyager, Voyager tokens and proceeds from the now-defunct mortgage to 3AC.

The crypto contagion began with the now-defunct Terra stablecoin termed TerraUSD (UST), which eventually led to the downfall of the $40 billion ecosystem. Several crypto hedge funds and lending corporations exposed to Terra shed tens of millions of pounds, which later led to the insolvency of 3AC, followed by the downfall of crypto leaders these types of as Celsius, BlockFi, Hodlnaut and Voyager.

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