Alameda’s $446M Plea ‘Dismissed’ by Voyager & Creditors

Sahana Kiran
Source – Cryptopolitan

While the industry was turning over a new chapter in 2023, bankruptcy proceedings from 2022 continue to remain prevalent. Voyager Digital has been looking for ways to deal with its insolvency. Amidst this, FTX’s sister company, Alameda Research was looking to acquire the $446 million that it transferred to Voyager before its demise. This loan repayment, however, was dismissed by Voyager as well as its creditors.

According to a recent court filing, Voyager expects to see Alameda’s assertions be either reclassified as equity or given an equitable secondary position to all other creditor claims. The creditors involved echoed this notion as they believed Alameda’s “inequitable and fraudulent conduct” was hefty on Voyager.

Alameda’s action apparently cost Voyager and the creditors around $114 million to $122 million. The business was charged with inflating its financial stability. According to reports, the sister firm of FTX claimed to have a “bottomless sea of ordinary crypto.” The creditors further shed light on the next course of action and sought the court to,

“..rearrange the priorities of creditors’ interests and to place all or part of a wrongdoer’s claim in an inferior status, in order to achieve a just result.”

Will Alameda be charged with a felony?

Voyager’s creditors were compelled to buy the balance sheet of the insolvent company as a result of Alameda’s misrepresentation of its financial soundness. It should be noted that during its bankruptcy filing, Voyager had 10 different loan sheets with Alameda. Things would have panned out differently if the truth had been revealed earlier. Creditors even went so far as to state that Alamdea’s acts may qualify as a felony. The court documents said,

“Had the committee known the truth, it never would have allowed the AlamedaFTX deal.”

Additionally, voting on the bankruptcy plan will close on Feb. 22. Voyager is due to return to court on Mar. 2 to continue the lawsuit.