BlocksInform
attempt by defunct crypto trading firm Alameda Research to extract $446 million it made in loan repayments to bankrupt Voyager Digital has been rejected by both the creditors’ committee and Voyager itself, according to court filings.
The travel creditors submitted that Alameda's claims should be fairly subordinated to all other claims of the creditors or requalified into shares.
Creditors have stated that the "unfair and fraudulent conduct" of Alameda has cost travellers and creditors between $114 million and $122 million. The creditors cited earlier jurisprudence according to which the court can rearrange the priorities of the interests of the creditors and put all or part of the claim of a wrongdoer in a lower status, for a fair outcome."
Alameda, as far as creditors are concerned, made a series of misrepresentations to Voyager and its creditors' committee regarding its financial soundness claiming at some point to have a "bottomless sea of ordinary cryptocurrency."
That is why the Voyager Creditors Committee voted in favor of Alameda's selection as the buyer of Voyager's balance sheet through the slightest margins, according to court documents.
"If the committee had known the truth, it would never have permitted the Alamedaftx contract," the depots read. The creditors have added that the behavior of Alameda can even constitute a crime.
For its part, Voyager, in court documents filed earlier, says that “Alameda has caused the Debtors and their creditors substantial harm” because they “made a bid for the Debtors’ business that they could never satisfy” under false pretences.
"They have pushed back the efforts of the Debtors to restructure by several months, imposing millions of dollars in additional and unnecessary costs on the [estates] of these Debtors when the auction reopens," reads the Voyager report.
In the end, Binance.US was successful in purchasing Voyager’s balance sheet with the deal being approved by a judge in early January.
Voting for the bankruptcy plan is scheduled to end on Feb. 22 scheduled to return to the court on March. 2 for the prosecution.
Former senior executives at Alameda Research and its crypto exchange ftx subsidiary were charged with electronic fraud and other crimes by the US Department of Justice. While some have pleaded guilty and are cooperating with investigators, FTX founder Sam Bankman-Fried has pleaded not guilty.
UPDATE (Feb. 1, 07:52 UTC): Adds last paragraph.
