Just-In: Sam Bankman-Fried & Alameda Chief Served With Subpoenas From Voyager

Insolvent crypto lender Voyager Digital’s Official Committee of Unsecured Creditors or Voyager UCC in short, has sent subpoenas to a number of officials at FTX and its trading arm, Alameda Research. Among these executives are FTX co-founder Gary Wang, former Alameda Chief Caroline Ellison and FTX founder and former CEO Sam Bankman-Fried.

Voyager Subpoenas SBF & Gang

According to a document that was submitted to the court on February 18th, attorneys representing Voyager UCC have made a request for copies of a number of documents that pertain to communications that have taken place between FTX, the Securities and Exchange Commission (SEC), and the Department of Justice. A request for records relating to Caroline Ellison and Gary Wang’s admissions was also included in the subpoena that was issued.

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Furthermore, Bankman-Fried has been asked to show up remotely for a deposition on February 23rd as well. In the official court document, the counsel for Voyager UCC was quoted as saying:

[Voyager UCC] has served a Subpoena to Testify at a Deposition in a Bankruptcy Case on Samuel Bankman-Fried, requesting that he produce all Documents and Communications responsive to the document requests set fort.

FTX’s Growing Concerns

In light of the comments made by the company’s current CEO, John J. Ray III, that FTX-related companies “used software to conceal the misuse of customer cash” and that “the FTX Group did not keep appropriate books and records,” the attorneys have demanded evidence to support these claims. In addition, the subpoenas demanded information concerning the loan portfolio shared by Alameda and Voyager, as well as FTX’s financial status both before and after the company filed for bankruptcy on November 11, 2022.

Moreover, the bankruptcy judge overseeing Voyager’s Chapter 11 case in the United States, Michael Wiles, had earlier indicated that he will appoint a fee examiner to look into the professional fees involved in the case. A fee examiner will be helpful, as Judge Wiles observed, because the costs associated with the bankruptcy proceeding are significantly more than was initially anticipated. But, he also mentioned that the estate might end up spending more money on the examiner than it could save on other professional expenses, and he suggested putting a limit on the amount of money that the estate would have to pay the examiner.

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