New Revelations in Voyager Digital Controversy – Here’s What Binance CEO Says

Crypto lender, Voyager Digital after filing for bankruptcy on Wednesday in Ontario, Canada, revealed Alameda Research as a creditor, shareholder, and borrower. These revelations of Almeda’s $377 million loan in the Voyager bankruptcy led to heated debate from the crypto influencers including Binance CEO ‘CZ’.

first-banner-ad
first-banner-ad

After CZ criticized FTX’s CEO Sam Bankman-Fired (SBF) and Alameda for controversial deals. Alameda Research has agreed to pay the Voyager loan and get the collateral back. Alameda Research in a tweet on July 8 had agreed to pay the loans it owes to Voyager.

Binance CEO criticized FTX and Alameda Research for making such deals. He pointed out that 3AC owes Voyager a few million dollars and goes bankrupt. After Alameda invested in Voyager, then took a $377 million loan from Voyager, but did not pay the loan which could have prevented Voyager Digital from going bankrupt.

SBF in an interview with Wall Street Journal said, the loan given to Alameda was a part of normal crypto lending and was unrelated to the $75 million credit line invested by Alameda in Voyager. 

Failure of Voyager and Unsecured Loans

In mid-June, Voyager Digital had received a $200 million line of credit and 15,000 bitcoins from Alameda Research, an investment firm founded by SBF. The notification states that Voyager Digital still has $110 million in cash on hand to run its regular business activities throughout the bankruptcy process. 

This would be in addition to the $1.3 billion in crypto deposits made on the platform and the $350 million in customer funds that are now in an account at Metropolitan Commercial Bank (MCB).

Voyager Digital had reported a delay in payment by Three Arrow Capital (3AC), which includes 15,250 Bitcoins and 350 million units of stablecoin UDC – amounting to approximately 600 million euros, at the end of June. 3AC declared bankruptcy at the same time. 

Voyager had also invested in other crypto firms in the form of loans, such as Genesis Global Trading, Wintermute Trading, Galaxy Digital, and Tai Mo Shan Ltd., affiliated to Jump Trading Company, which owed Voyager Digital nearly $100 million.

The CEO of Voyager Digital, Stephen Ehrlich, has revealed a financial restructuring plan to protect assets and return customers’ funds. Apart from this, Celsius has also cleared its loan and transferred $500 million to the FTX Exchange.

Photo of Elena R
Source: Read Full Article