Voyager Digital Creditors Deny Alameda’s Request For $446 Million
Key Points:
- Both the creditors’ committee and Voyager Digital itself have rejected an attempt by the defunct cryptocurrency trading company Alameda Research to recover $446 million it paid in loan repayments to the bankrupt Voyager Digital, according to court documents.
- Alameda repeatedly misrepresented its financial standing to Voyager and its creditors’ committee. At one point, it claimed to have a “bottomless sea of conventional cryptocurrencies.”
Both the creditors’ committee and Voyager Digital itself have rejected an attempt by the defunct cryptocurrency trading company Alameda Research to recover $446 million it paid in loan repayments to the bankrupt Voyager Digital, according to court documents.
Voyager creditors contended that Alameda’s claims should either be reclassified as equity or given equitable precedence over all other creditor claims.
Alameda’s “inequitable and deceptive actions,” according to the creditors, cost Voyager and the creditors between $114 million and $122 million. The court may “rearrange the priorities of creditors’ interests and to place all or part of a wrongdoer’s claim in an inferior status, in order to reach a just conclusion,” according to existing case law, which was referenced by the creditors.
According to the creditors, Alameda repeatedly misrepresented its financial standing to Voyager and its creditors’ committee. At one point, it claimed to have a “bottomless sea of conventional cryptocurrencies.”
According to court documents, it was because of these assertions that Voyager’s creditors committee narrowly approved Alameda as the buyer of Voyager’s balance sheet.
According to the documents:
“Had the committee understood the facts, it never would have approved the AlamedaFTX agreement.” The creditors continued by saying that Alameda’s actions might possibly be considered felonious.
Voyager, on the other hand, claims in earlier court records that “Alameda has substantially harmed the Debtors and their creditors” since they “made a bid for the Debtors’ business that they could never satisfy.”
When the bidding was reopened, “they placed millions in additional, unwarranted fees and charges on these Debtors’ [estates], setting the Debtors’ restructuring efforts back months,” according to Voyager’s statement.
In the end, Binance.US was able to acquire Voyager’s balance sheet thanks to a judge’s approval of the transaction in early January.
Voting on the bankruptcy plan will close on February 22 and Voyager is due to return to court on March 2 to continue the lawsuit.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your research before investing.
Join us to keep track of news: https://linktr.ee/coincu
Website: coincu.com
Annie
Coincu News
Author
Blockchain
Voyager Digital Creditors Deny Alameda’s Request For $446 Million
Key Points:
- Both the creditors’ committee and Voyager Digital itself have rejected an attempt by the defunct cryptocurrency trading company Alameda Research to recover $446 million it paid in loan repayments to the bankrupt Voyager Digital, according to court documents.
- Alameda repeatedly misrepresented its financial standing to Voyager and its creditors’ committee. At one point, it claimed to have a “bottomless sea of conventional cryptocurrencies.”
Both the creditors’ committee and Voyager Digital itself have rejected an attempt by the defunct cryptocurrency trading company Alameda Research to recover $446 million it paid in loan repayments to the bankrupt Voyager Digital, according to court documents.
Voyager creditors contended that Alameda’s claims should either be reclassified as equity or given equitable precedence over all other creditor claims.
Alameda’s “inequitable and deceptive actions,” according to the creditors, cost Voyager and the creditors between $114 million and $122 million. The court may “rearrange the priorities of creditors’ interests and to place all or part of a wrongdoer’s claim in an inferior status, in order to reach a just conclusion,” according to existing case law, which was referenced by the creditors.
According to the creditors, Alameda repeatedly misrepresented its financial standing to Voyager and its creditors’ committee. At one point, it claimed to have a “bottomless sea of conventional cryptocurrencies.”
According to court documents, it was because of these assertions that Voyager’s creditors committee narrowly approved Alameda as the buyer of Voyager’s balance sheet.
According to the documents:
“Had the committee understood the facts, it never would have approved the AlamedaFTX agreement.” The creditors continued by saying that Alameda’s actions might possibly be considered felonious.
Voyager, on the other hand, claims in earlier court records that “Alameda has substantially harmed the Debtors and their creditors” since they “made a bid for the Debtors’ business that they could never satisfy.”
When the bidding was reopened, “they placed millions in additional, unwarranted fees and charges on these Debtors’ [estates], setting the Debtors’ restructuring efforts back months,” according to Voyager’s statement.
In the end, Binance.US was able to acquire Voyager’s balance sheet thanks to a judge’s approval of the transaction in early January.
Voting on the bankruptcy plan will close on February 22 and Voyager is due to return to court on March 2 to continue the lawsuit.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your research before investing.
Join us to keep track of news: https://linktr.ee/coincu
Website: coincu.com
Annie
Coincu News
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