FTX accused Voyager Digital of not performing due diligence before investing money and hopes to recover funds to pay back its creditors.
Bankrupt FTX exchange sister company Alameda Research has sued Voyager Digital in a bid to recover the loan repayment it made last year before filing for bankruptcy in November 2022.
The lawsuit has been filed by the lawyers representing FTX and Alameda Research in Delaware court for $445.8 million against Voyager Digital. FTX claims that they are eligible to receive back the loan amount which was paid to Voyager Digital around the same time Voyager filed for bankruptcy.
FTX took a loan from Voyager Digital which it paid back, $248.8 million in September, $193.9 million in October, and a $3.2 million interest payment in August. The amount was paid after Voyager filed for bankruptcy in July 2022.
Since Voyager was already bankrupt, FTX and Alameda Research are eligible to receive back the loan amount which they have planned to pay back to the creditors.
In addition to the lawsuit, FTX has also requested the exclusion of its subsidiaries FTX Turkey and SNG Investments from bankruptcy charges since U.S. courts have no jurisdiction in Turkey.
Voyager Digital filed for bankruptcy after Singapore based hedge fund Three Arrow Capital failed to repay $670 million loan it took from the platform, leaving it with no liquidity to survive in the tough market conditions.
Strangely, FTX exchange offered to buy Voyager Digital before it filed for bankruptcy last year. Soon after FTX bankruptcy, Binance jumped on the opportunity and bought Voyager for $1.022 billion.
The FTX bankruptcy proceedings are underway while Binance has got complete clearance to purchase the assets of estranged Voyager Digital.
This lawsuit may cause some trouble in the acquisition process but the whole scenario seems to be more intentional than pragmatic given the relations between Sam Bankman-Fried and ChangPeng Zhao.
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Paras is a blockchain writer & video creator at Katoch Tubes. In his free time, he loves watching space exploration documentaries & Hollywood movies.