- A federal judge has agreed to ringfence $445 million of Voyager Digital’s remaining capital following Alameda Research’s lawsuit
- Alameda sued Voyager in January to try and claw back the money it sent over in loan repayments
- An Alameda victory could hit Voyager creditors hard in terms of recovered funds
A federal judge has agreed to ringfence $445 million in loan repayments that Alameda Research is demanding Voyager Digital hand back. The FTX-related entity sued Voyager in January regarding repayments of a loan that the exchange made to Alameda, using bankruptcy laws to try and claim the repayments back. Legal arguments suggest that, were the lawsuit to be ruled in Alameda’s favor, Voyager customers could see their 73% fund recovery drop to 48%. Voyager’s assets and customer base was officially handed over to Binance.US yesterday, so this news couldn’t have come at a worse time.
Alameda Wants Loan Repayments Back
The dispute stems from a $445 million loan that Voyager Digital made to Alameda Research shortly before it filed for bankruptcy in July 2022. Alameda repaid the loans prior to its own bankruptcy filing last November, and January’s action was aimed at trying to get the funds back using bankruptcy rules designed to ensure some creditors aren’t favored over others.
Yesterday, Judge John Dorsey gave his approval to the agreement between Alameda and Voyager to ringfence the funds after a scheduled FTX hearing in the U.S. Bankruptcy Court for the District of Delaware was called off earlier that day. The unsecured creditors committees involved in the bankruptcy cases of both Voyager and FTX are also included in the agreement, which includes provisions for non-binding mediation and a framework for addressing unresolved disputes.
Alameda Win Would Hit Creditors Where it Hurts
Voyager creditors will be fervently hoping that it wins the case however, as it would directly impact the amount they are able to recover as part of the Binance.US rescue deal. As part of the current restructuring plan, Voyager customers could potentially receive a 73% recovery rate on their deposits, but if Alameda’s claims are successful, that percentage could drop to 48%.
