Summary
- Alameda Research is suing Voyager Digital for $445.8 million to recoup loan repayments made following Voyager’s bankruptcy filing in July.
- According to a recent court filing, Voyager and other cryptocurrency lenders “either intentionally or negligently” encouraged the alleged wrongdoing at Alameda Research.
Alameda Research, a troubled cryptocurrency trading company, is suing bankrupt cryptocurrency lender Voyager Digital for more than $445 million in an effort to recover loan repayments made after Voyager requested bankruptcy protection.
The statement, submitted on Monday afternoon in a federal bankruptcy court in Delaware, stated that the $445.8 million total sum that Alameda’s lawyers are seeking in repayment could increase if the record of more payments from Alameda to Voyager will be shown. In addition, they demand reimbursement for their legal expenses.
When the crypto behemoth crashed in November following a run on its utility token, Alameda Research was one of the more than 100 FTX-linked companies that filed for bankruptcy protection. Only a few months prior, Voyager Digital had filed a bankruptcy petition.
In court documents, Alameda lawyers criticized Voyager for its part in the downfall of FTX and Alameda, calling it a “feeder fund” that performed “little to no due diligence” before investing money from retail investors. In a different case, Caroline Ellison, the former CEO of Alameda Research, entered a guilty plea to criminal charges.
Read more: Breaking: Alameda’s Caroline Ellison And FTX’s Gary Wang Plead Guilty To Fraud Allegations
A request for comment was not immediately answered by Voyager Digital.
Lawyers are attempting to recoup money that Alameda Research paid to Voyager before Alameda Research filed for bankruptcy protection and after the crypto lender filed for bankruptcy protection in July.
The role played by Voyager and other cryptocurrency “lenders” who funded Alameda and fueled that illegal conduct, either intentionally or recklessly, has been largely overlooked in the (justified) attention paid to Alameda and its now-indicted former leadership, as per the filing from FTX and Alameda’s legal team.
Following the filing of Voyager’s bankruptcy case, the filing states that all outstanding loans to Alameda Research were “repaid in full.”