FTX clawback efforts accelerate with $450M lawsuit against Voyager

Sam Bankman-Fried’s bankrupt crypto lending arm Alameda Research has filed a lawsuit against bankrupt crypto brokerage Voyager Digital, in an attempt to reclaim approximately $446 million in loan payments.

The lawsuit described Voyager Digital as a ‘feeder fund’ that ‘fueled’ the misconduct of Alameda Research. A feeder fund is a structure where investors invest in that fund, and the investments are then fed into the ‘master fund’ which executes the investments — a key target for clawbacks in the Bernie Madoff case.

“The collapse of Alameda and its affiliates amid allegations that Alameda
was secretly borrowing billions of FTX-exchange assets is widely known,” the lawsuit stated. “Largely lost in the (justified) attention paid to the alleged misconduct of Alameda and its now-indicted former leadership has been the role played by Voyager and other cryptocurrency “lenders” who funded Alameda and fueled that alleged misconduct, either knowingly or recklessly.”

The lawsuit further alleged that after Voyager commenced bankruptcy proceedings, it demanded repayment of loans that had been extended to Alameda Research. However, the lending arm claims that these loans were all repaid in full.

Read more: From Alameda chief to bankrupting FTX, meet Caroline Ellison

This case has been further complicated due to the fact that in October, Voyager returned collateral supposedly associated with the repaid loans to Alameda Research. Alameda claims it’s been unable to determine whether or not the collateral was attached to its loans.

Before its own bankruptcy, FTX and Alameda Research entered a bid to purchase Voyager Digital. This would have allowed Voyager customers to become FTX customers and withdraw their funds. During this period, FTX allegedly loaned customer funds to Alameda Research, leading to its own collapse.

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