FTX, the once-thriving crypto exchange, has taken legal action against Voyager Digital, seeking to recover $445.8 million in loan repayments made before FTX filed for bankruptcy last November. The lawsuit was filed on Monday in the US Bankruptcy Court for the District of Delaware and alleges that FTX made the loan payments on behalf of its sister trading arm, Alameda Research, in September and October of last year.
Both FTX and Voyager Digital faced severe financial challenges in the tumultuous cryptocurrency market last year, with FTX collapsing due to liquidity issues and Voyager struggling with the so-called “crypto winter” and exposure to the now-defunct Three Arrows Capital. The lawsuit claims that Voyager demanded FTX and Alameda pay all outstanding loans after Voyager’s own bankruptcy filing in July.
If successful, FTX hopes to use the recovered funds to pay off Alameda’s creditors. The lawsuit also acknowledges the allegations that Alameda was secretly borrowing billions of FTX’s customer funds for risky investments, but emphasizes Voyager’s role in fueling the alleged misconduct.
FTX’s bankruptcy proceedings have shed light on the inner workings of the company and its former CEO, Sam Bankman-Fried. According to the Guardian, FTX was under scrutiny from Australian regulators for almost eight months prior to its crash.
As the legal proceedings continue, the crypto industry is closely watching to see the outcome of this latest development. If FTX is successful in reclaiming the loan repayments, it could have significant implications for the industry and its players. The case also highlights the ongoing challenges faced by the cryptocurrency market and the need for increased regulation and oversight.