📰 Table Of Contents
Bankrupt Crypto Firms FTX Trading and Voyager Digital Holdings Settle Loan Disputes
Bankrupt crypto firms FTX Trading and Voyager Digital Holdings have agreed to settle loan disputes, which would help reimburse creditors. The long-standing claims and disputes between both parties came to an end, entirely releasing $445 million to Voyager, including interest.
Background of the Dispute
- Voyager’s crash was influenced by the debacle of crypto hedge fund Three Arrows Capital (3AC).
- FTX had loaned about 60% of its holdings to 3AC.
Settlement Details
FTX asked a Delaware bankruptcy court to approve the deal, providing mutual releases fully resolving all claims and disputes between Voyager and FTX. Both firms had asserted claims against each other in their respective Chapter 11 bankruptcies.
Legal Proceedings
- It all started from a cryptocurrency loan Voyager made in October 2021 to Alameda Research Ltd., an FTX subsidiary.
- In January last year, Alameda and FTX brought an adversary proceeding against Voyager to recover loan repayments.
- Voyager filed proofs of claim for $130 million against FTX in June 2023, accusing Alameda of breaching terms of the loan agreement.
Implications of the Settlement
After the settlement, both firms will take no further action against each other, subject to certain conditions. This agreement brings hope for investors who have had their cryptos locked up on the platform.
Positive Outcome for Voyager Creditors
The settlement will result in $450 million, plus interest, being released in the near-term, for distribution to creditors in the coming months. This is seen as a favorable outcome for Voyager creditors, reducing risks and uncertainties associated with continued litigation.
Warning Against Scammers
The filing also warned creditors to be cautious of scammers posing as Voyager. Measures have been taken to address fraudulent activities targeted towards Voyager creditors.
Ian is a cryptocurrency enthusiast blending humor with professionalism. With an engineering background and a storyteller's heart, he simplifies the blockchain world with sharp analysis and a touch of wit. At Cryptowire, he brings his unique perspective to make digital financial innovation accessible to all.
