BlocksInform
Bankruptcy attorneys crypto broker voyager digital served FTX former CEO Sam Bankman-fried and other ftx and alameda researchers frameworks with subpoenas asking for information.
Summonses are very wide-ranging, with the attorneys to travel looking for copies of all documents and communication between the ftx entities and the Securities and Exchange Commission (sec) or the Department of Justice (doj) as per Feb. 6 filing.
Amongst a plethora of other requested documents, the lawyers also want to see information relating to the loan portfolio between Alameda and Voyager as well as FTX’s financial condition before and after it filed for bankruptcy on Nov. 11, 2022.
The other executives who were served subpoenas include former Alameda CEO, Caroline Ellison, FTX co-founder, Gary Wang and FTX’s head of product, Ramnik Arora — each was asked to provide the requested information by Feb. 17.
The financial ties between Voyager and Alameda are deep, with Alameda seeking to recover $446 million it repaid Voyager. In a Jan. 30 filing, she submitted that because she had repaid Voyager within 90 days of filing her own bankruptcy, she could recover the funds to her creditors.
In response, Voyager claimed its creditors had suffered “substantial harm” after Alameda made a bid for Voyager’s assets that it was unable to honor, which cost Voyager $100 million and rendered Alameda’s claim subordinate to those of its other creditors.
Related: SBF’s lawyers move to block release of bail guarantors’ identities
Meanwhile, United States bankruptcy judge Michael Wiles said he would be appointing a fee examiner to look at professional fees in Voyager’s Chapter 11 case, according to a Feb. 7 Law360 report.
Congrats to Voyager creditors for several victories today
* Appointment of fee examiner
* Judge ordering release of full report
* Scrutiny on $10M transferred on eve of BK to pay legal fees for directors out of creditors pockets https://t.co/NCswHgc7z3
— Shingo Lavine at @shingolavin February 7, 2023
Wiles would have suggested that the professional costs involved in the bankruptcy were higher than anticipated, and he was persuaded by the U.S. trustee's argument that a cost reviewer would be beneficial.
Wiles pointed out that an examiner could eventually cost the estate more than he could save in professional expenses, however, and recommended that examiners' salaries be capped.
