Bankrupt crypto hedge fund Alameda Research is suing Voyager Digital to get back the loan repayments that the FTX exchange made to Voyager. The lawsuit has been filed by the lawyers involved in the FTX and Alameda bankruptcy proceedings.

Alameda sues Voyager for $446 million

FTX and Alameda want Voyager to return $445.8 million in loan repayments made to the lender by FTX shortly before the latter filed for bankruptcy. The lawsuit against Voyager was filed on January 30 in a Delaware court.

Voyager Digital filed for bankruptcy four months before FTX did. The crypto lender filed for Chapter 11 bankruptcy protection in July. As part of the bankruptcy process, Voyager demanded that FTX, and its sister company Alameda, repay all their outstanding loans.

The FTX lawyers argue that these loan repayments should be returned to FTX and Alameda because they were made shortly before the two companies also filed for bankruptcy. FTX made its first loan repayment of $248.8 million to Voyager in September. In October, it made a second repayment of $193.9 million. In August, FTX made a $3.2 million interest payment on the debt.

The FTX lawyers admitted that Alameda engaged in risky trades while mismanaging customer deposits made on FTX. However, they have added that Voyager and all the crypto lenders that lent their money to Alameda shared responsibility because they “knowingly or recklessly” channeled customer funds to Alameda.

Between 2021 and 2022, FTX lawyers note that Voyager lent hundreds of millions of dollars to Alameda without conducting any due diligence. They also noted that Voyager’s business model was similar to a “feeder fund” that invested money in questionable investment funds like Alameda and Three Arrows Capital.

If the FTX and Alameda lawyers can recover these funds from Voyager, it would increase the amount of funds available to repay creditors. Before FTX’s bankruptcy, the exchange had won a bid to acquire Voyager.

New developments in the FTX bankruptcy case

A string of new developments have happened in the past week related to the FTX bankruptcy case and the fraud charges facing the exchange’s former CEO, Sam Bankman-Fried.

On January 27, FTX filed a motion to exclude two of its subsidiaries, FTX Turkey and SNG Investments, from the bankruptcy proceedings. The lawyers noted that the US courts do not have any jurisdiction in Turkey, and the customers of the two platforms had started filing private claims against the company.

The judge overseeing the charges against Bankman-Fried has also ruled that the identities of the two people who helped the former crypto billionaire to obtain a $250 billion bail be revealed. The identities of the two were initially redacted after requests by Bankman-Fried’s lawyers.

Prosecutors have also accused Bankman-Fried of witness tampering. The federal prosecutors said that Bankman-Fried sent a message to the general counsel of FTX US seeking a “constructive relationship.” The prosecutors want the judge to add new bail conditions prohibiting Bankman-Fried from communicating with his former colleagues.

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