Alameda Research Sues for $446 Million in Preferential Transfer Case Against Voyager Digital

Alameda Research strikes back with legal action! The company has filed a lawsuit against Voyager Digital and HTC Trading in a U.S. bankruptcy court. The complaint accuses the defendants of unfairly receiving preferential transfers from Alameda Research and demands the recovery of a massive $445.8 million from Voyager and HTC.

Alameda Research, the once thriving quantitative trading firm founded by Sam Bankman-Fried, is demanding nearly $446 million from the bankrupt Voyager Digital and HTC Trading in the FTX bankruptcy proceedings. The company’s lawyers assert that Alameda paid off outstanding loans after Voyager filed for bankruptcy in July. Additionally, the complaint claims that the transfers are recoverable as a top priority under sections 503 and 507 of the U.S. Bankruptcy Code.

“The collapse of Alameda and its affiliates amid allegations that Alameda was secretly borrowing billions of FTX-exchange assets is widely known,” the filing details. “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 cryptocurrencies ‘lenders’ who funded Alameda and fueled that alleged misconduct, either knowingly or recklessly,” the complaint adds.

Voyager’s financial troubles started when it defaulted on hundreds of millions of loans from Three Arrows Capital, leading to its bankruptcy protection filing in July. But, Sam Bankman-Fried and FTX stepped in, promising early liquidity to Voyager’s customers during the proceedings.

They even unveiled a $1.4 billion plan to purchase Voyager and its assets. However, their bid was met with opposition from the Texas State Securities Board (TSSB) which stated that the state securities commissioner needed to assess if FTX US was following the law. 

Alameda’s lawyers say in the filing that after the firm paid Voyager in crypto assets, it “had been unable to determine whether [Voyager] held a valid and effective lien or security interest.” The plaintiffs’ lawyers consider the transfers “preferential transfers” that were “avoidable.” Alameda insists it’s entitled to payment for the transfers, which it says were “made to or for the benefit of one or more of the defendants.”

Joy Rice

Joy Rice is a computer science graduate and crypto writer with a strong understanding of blockchain technology. She writes about the latest developments in the crypto industry, and is passionate about educating and informing readers about the potential uses of blockchain.