FTX Group Sues Voyager Digital for $446 Million Loan Repayment
• Alameda, a subsidiary of the FTX Group, is suing Voyager Digital, a cryptocurrency service provider, for loan repayment of nearly $446 million.
• The lawsuit states that Voyager Digital lent the money to Alameda without conducting proper due diligence.
• The FTX Group is attempting to absolve its leadership of all responsibility in the bankruptcy proceedings.
Cryptocurrency service provider Voyager Digital has found itself in hot water, as Alameda, a subsidiary of the FTX Group, has filed a lawsuit against the former for loan repayment of nearly $446 million. According to lawyers for the FTX Group, Voyager Digital lent the money to Alameda without conducting due diligence, and the lawsuit is intended to recoup the outstanding debt.
The legal battle between the two has been ongoing since earlier this year, when Voyager Digital was forced to file its own Chapter 11 bankruptcy case. At the time, FTX made Voyager a buyout offer, which was refused. Subsequently, SBF lashed out at the latter, accusing it of attempting to squeeze more money out of customers via bankruptcy proceedings.
In its motion filed on the 30th of January, the FTX Group is now seeking to absolve its leadership of all responsibility in the bankruptcy proceedings. The Group is arguing that Voyager Digital has failed to provide sufficient evidence to support its claims of inadequate due diligence. Furthermore, the Group is alleging that Voyager Digital had the opportunity to conduct a thorough review of the loan agreement before granting it, but chose not to do so.
The case has caused a stir in the cryptocurrency industry, as both parties have a great deal of influence and resources behind them. With high stakes in play, the outcome of the lawsuit may have major implications for the future of cryptocurrency lending. It remains to be seen how the situation will unfold, and whether the FTX Group will ultimately be held accountable for its actions.