Sam Bankman-Fried’s Alameda Research to Repay Voyager $200 Million
Alameda Research, the investment arm of Sam Bankman-Fried’s crypto empire, is set to repay loans worth nearly $200 million to bankrupt crypto exchange, Voyager Digital.
Earlier in September 2021, Voyager secured a nearly $380 million credit facility from the quantitative trading firm. Then in June 2022, the US broker reached an agreement with Alameda Ventures to extend the previous credit facility, which was intended to help it meet client liquidity needs.
Alamada Research, led by Bankman-Fried, offered to extend a $200 million line of credit in cash and USDC alongside a 15,000 BTC revolver. The move came just days after Alameda provided the same type of loan to crypto lender BlockFi, citing the need to meet customers’ liquidity needs during these difficult times.
Nonetheless, the US dollar value of Alameda’s loans nearly halved as the loan was denominated in crypto tokens rather than fiat currency.
According to a recent bankruptcy court filing for the Southern District of New York, Alameda would repay 6,553 BTC ($128 million) and 51,204 ETH ($70 million) to Voyager. The filing revealed that the bankrupt company’s loan included smaller sums in other tokens, including USDC, Dogecoin (DOGE), Voyager Token (VGX), Chainlink (LINK), Luna Classic (LUC), Litecoin (LTC), etc
Payments are due September 30, and in return, Voyager would release collateral for the loans Alameda had pledged in the form of 4.65 million FTX tokens ($110.1 million) and 63.75 million Serum ( $49.1 million), which equals $160 million. .
The court filing further states that if Alameda is unable to meet its deadline, bitcoin payouts will increase by $34,000 per day.
Voyager asked a New York bankruptcy court to keep crypto wallets allegedly involved in the transactions private, citing “unwarranted speculation and scrutiny surrounding any account activity,” should Alameda wallets go public.
The news comes weeks after lawyers representing Voyager Digital described a joint proposal to bail out bankrupt crypto lender FTX and Alameda as a “low offer disguised as a white knight bailout.”
Voyager has received a lifeline from crypto billionaire Sam Bankman-Fried, offering to provide customers with early access liquidity. As part of the proposed restructuring agreement, West Realm Shires – owner and operator of FTX US and Alameda Ventures – would buy all of Voyager’s crypto assets and loans in cash at market value, excluding loans to the fund. Bankrupt crypto speculator Three Arrows Capital.
If approved, Voyager customers could reclaim some of their funds that were frozen earlier. Meanwhile, FTX would offer customers the opportunity to receive their share of claims by opening a new account with FTX.
In response, Voyager’s bankruptcy attorneys entered into a public spat with Sam-Bankman Fried whose offer was described by them as harmful, highly misleading and only benefiting FTX.