Quantitative trading company Alameda Research is expected to return close to $200 million to Voyager Digital, which is reportedly facing bankruptcy. Alameda made borrowings of approximately $380 million funds in cryptocurrencies during September, 2021, as reported by Cointelegraph.
According to Cointelegraph, through a recent filing in the Bankruptcy Court of Southern District of New York, the parties have entered into an agreement, and Alameda will give back around 6,553 Bitcoin (BTC) and 51,000 Ether (ETH) by September 30. Voyager will have to give back the collateral in the form of 4.65 million FTX Tokens (FTT) and 63.75 million Serum (SRM), amounting to $160 million. Since July, the company has been subjected to Chapter 11 bankruptcy procedures and has started to auction off its assets in September for returning faction of the funds to its customers.
On the basis of information by Cointelegraph, during a bankruptcy case, the court proceedings and financial documents have emphasised on the relationship between Voyager and Alameda. In June, when Voyager landed itself in problems, Alameda made the move from a borrower to a lender along with offering of a $500 million bailout. However, a public conflict took place between the two platforms, with Voyager refusing a buyout on account of customers’ safety. Voyager’s financial books show that it gave $1.6 billion worth cryptocurrency loans to a platform in British Virgin Islands, where Alameda is itself registered. Reportedly, Alameda was the biggest stakeholder in Voyager with an 11.56% stake in the company received through two investments at a valuation of $110 million. Previously, Alameda surrendered 4.5 million share for avoidance of reporting requirements, which brought its equity down to 9.49%.
Moreover, Cointelegraph noted that cryptocurrency platforms and lending entities such as Celsius, BlockFi and Hodlnaut also struggled to continue with its operations post the downfall of the global cryptocurrency market in early 2022.
(With insights from Cointelegraph)