Crypto Hedge Fund Seeks $445M from Bankrupt Lender in Clawback Suit

• Alameda Research, a defunct crypto hedge fund, has sued bankrupt crypto lender Voyager Digital for $445.8 million.
• The lawsuit is to recover loan repayments the hedge fund made to Voyager in the 90 days preceding its own bankruptcy.
• Alameda has alleged in the lawsuit that Voyager „fueled“ the misuse of customer funds either knowingly or recklessly.

Defunct crypto hedge fund Alameda Research recently filed a lawsuit against Voyager Digital, a bankrupt crypto lender, seeking to recover loan repayments worth $445.8 million. The lawsuit was filed in the Bankruptcy Court for the District of Delaware by lawyers of FTX.

Alameda Research had filed for bankruptcy along with its sister company FTX in November 2022. Voyager had filed for bankruptcy in July. According to the court filing, the hedge fund is trying to recover the loan repayments it made to Voyager in the 90 days preceding its own bankruptcy. The lawsuit stated that Voyager lent cryptocurrencies worth „hundreds of millions of dollars“ to Alameda in 2021 and 2022. After the bankruptcy filing, Voyager demanded repayment of all its loans to the hedge fund, even before maturity dates.

The lawsuit also stated that Voyager’s business model was that of a „feeder fund“ which means it solicited retail investors and invested their money with little or no due diligence in cryptocurrency investment funds such as Alameda and Three Arrows Capital. Alameda paid Voyager $3.2 million in interest in August 2022 and $248.7 million and $190.5 million in September and October 2022 respectively as loan repayments and payments of $3.2 million in interest.

Alameda Research has stated in the lawsuit that since the repayment was made in the 90 days preceding its bankruptcy, they are eligible to be clawed back. The hedge fund is now seeking to recover these repayments from Voyager and has accused the crypto lender of „fueling“ the alleged misuse of customer funds either knowingly or recklessly. It remains to be seen how the court rules on the case.