Defunct crypto hedge fund Alameda Research has sued bankrupt crypto lender Voyager Digital for $445.8 million.
Alameda is trying to recoup loan payments it made to Voyager in the 90 days before its own bankruptcy, according to a filing in court January 30.
Alameda filed for bankruptcy with its sister company FTX in November 2022. Voyager had filed for bankruptcy in July.
The lawsuit filed in the District of Delaware Bankruptcy Court by attorneys for FTX alleges that Voyager “fueled” Alameda’s alleged misuse of customer funds – “knowingly or recklessly.”
The lawsuit said:
“Voyager’s business model was that of a feeder fund. He solicited retail investors and invested their money with little to no due diligence in cryptocurrency investment funds like Alameda and Three Arrows Capital.
He added that Voyager loaned cryptocurrencies worth “hundreds of millions of dollars” to Alameda in 2021 and 2022.
After filing for bankruptcy, Voyager demanded that all of its loans to the hedge fund be repaid, even before the due dates, the lawsuit says.
Alameda paid $3.2 million in interest to Voyager in August 2022, according to the court filing. The company also paid Voyager $248.7 million in September 2022 and $190.5 million in October 2022 in loan repayments and payments of $3.2 million in loan fees to Voyager.
Alameda has since fully repaid all loans to Voyager, according to the court filing.
Under bankruptcy laws, those payments can be recovered because they were made near Alameda’s bankruptcy, the lawsuit says. The company aims to use the recovered funds to repay its creditors.