NewsletterVoyager Digital Controversy: Here’s What Binance’s CZ Has To Say
Crypto lender Voyager Digital’s bankruptcy filing revealed Alameda Research as a creditor, shareholder, and borrower. The revelations of Alameda’s $377 million loan in the Voyager bankruptcy erupted into heated debates from crypto influencers, including Binance CEO “CZ”.
Now, Alameda Research has agreed to pay the Voyager loan and get the collateral back. It happens after CZ criticized FTX’s CEO Sam Bankman-Fried and Alameda for controversial deals.
Voyager Agrees To Pay Voyager Loan
After several crypto experts criticized FTX CEO SBF and Alameda Research for not paying Voyager’s $377 million loans and not being transparent to the community. Alameda Research in a tweet on July 8 announced that it will pay the loan it owes to Voyager.
“Happy to return the Voyager loan and get our collateral back whenever works for voyager.”
Binance CEO “CZ” criticized FTX and Alameda Research, both founded by SBF, for doing such types of deals. He pointed out that Three Arrows Capital owes Voyager a few million dollars, but goes bankrupt. However, Alameda invested in Voyager, then takes a $377 million loan from Voyager, but didn’t bailout or pay the loan to prevent Voyager from bankruptcy.
“So, 3AC owes Voyager a few 100m, went bust. FTX/Alameda gives 3AC $100m, but didn’t save it. Alameda invests in Voyager, then takes a $377 million loan from Voyager… ok… Voyager went bust. FTX didn’t “bail them out” or return the money? hard to follow?”
In an interview with the Wall Street Journal, Sam Bankman-Fried said, the loan to Alameda was part of the normal lending business of crypto lender Voyager. Moreover, the loan was unrelated to the $75 million credit line offered by Alameda to Voyager.
Interestingly, Alameda’s equity and the $75 million credit line would be wiped out under Voyager’s restructuring plan.
Voyager Failure Due to Unsecured Loans
Voyager invested in other crypto companies in the form of loans. Besides, Three Arrows and Alameda, Genesis Global Trading, Wintermute Trading, Galaxy Digital, and Tai Mo Shan Ltd., an affiliate of Jump Trading Group, also owe nearly $100 million in total to Voyager Digital.
Meanwhile, Voyager’s CEO Stephen Ehrlich has revealed a financial restructuring plan to protect assets and return customers’ funds. Also, Celsius has cleared its Maker loan and transferred $500 million to the FTX exchange.
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