Alameda Research ‘happy to return’ $200M loan to Voyager Digital

The trading company will pay back the debt, which has fallen almost twice in dollar estimate, by the end of September.

Quantitative trading company Alameda Research will return an estimate of $200 million to Voyager Digital, which is proceeding through bankruptcy. Alameda borrowed the funds in cryptocurrencies in September 2021. At that time, the sum was close to $380 million. 

Per a recent filing in the Bankruptcy Court of Southern District of New York, the parties have reached an agreement, and Alameda will return around 6,553 Bitcoin (BTC) and 51,000 Ether (ETH) by Sept. 30. In its corporate Twitter account Alameda confirmed its readiness to return the funds:

happy to return the Voyager loan and get our collateral back whenever works for voyager

— Alameda Research (@AlamedaResearch) July 8, 2022

In its turn, Voyager will have to return the collateral in the form of 4.65 million FTX Tokens (FTT) and 63.75 million Serum (SRM), which amounts to $160 million by press time. The company has been undergoing Chapter 11 bankruptcy procedures since July and started to auction off its assets in September in order to return part of the funds to customers. 

During the bankruptcy case, the court proceedings and financial documents have shown a deep relationship between Voyager and Alameda. In June, when Voyager got in trouble, Alameda moved from a borrower to a lender and offered a $500 million bailout. However, that led to a public conflict between the two sides with Voyager rejecting a buyout, claiming it could “harm customers.”

Related: Alameda Research and FTX merge VC operations

Moreover, Voyager’s financial books indicate that it lent out $1.6 billion in crypto loans to an entity based in the British Virgin Islands, the same place where Alameda is registered. At the same time, Alameda was also the biggest stakeholder in Voyager, with an 11.56% stake in the company acquired through two investments for a combined total of $110 million. Earlier this year, Alameda surrendered 4.5 million shares to avoid reporting requirements, bringing its equity down to 9.49%.

Like several other crypto platforms and lending entities, including Celsius, BlockFi and Hodlnaut, Voyager struggled to continue its operations in the aftermath of the global crypto market downfall in the early Summer of 2022.

Related Posts

1inch wallet users get domain names with Unstoppable Domains partnership

The DEX aggregator said the partnership would promote the wider adoption of DeFi and Web3 products and services. Decentralized exchange aggregator 1inch has partnered with Unstoppable Domains…

Wall Street disaster expert Bill Noble: Crypto spring is inevitable

“It’s 10% up or 10% down each day. I don’t have to wait five years in between crises. As a matter of fact, I only have to…

Ripple to surge 50% due to new partnership and comments from former SEC director to XRP case

According to analysts, XRP is just a breakout away from marking a 50 percent price rally. According to independent market analyst DonAlt, a loss for Ripple would…

Is payments giant SWIFT preparing for a blockchain-bound future?

Are TradFi and DeFi converging, moving toward a middle ground that includes tokenized assets, interoperability and regulation? SWIFT is a payments colossus. It operates across more than…

Banks hold $9,200,000,000 in Bitcoin, Ethereum, Solana and other cryptos – Will they increase their share?

The total exposure of top global banks to crypto assets is more than $9.2 billion and of this, Bitcoin and Ethereum have a combined share of more…

Tao Te Ching (TTC): Can Chinese Wisdom Justify Its $661 Price?

Tao Te Ching takes its name from the ancient book of Chinese wisdom, but is this microcap memecoin with its ultra low circulating supply the way, or…

Generated by Feedzy