Voyager Digital Keeps $445M in Alameda Lawsuit Settlement

02/28/2023 23:55 • Blockchain Buzz • 154 views

It is reported that according to a new court document, the encryption lending platform Voyager Digital agreed to retain $445 million after being sued by Alameda Research for repayment of the loan. The lawyer filed a motion on Monday to allow the Voyager debtor to reach an agreement with the FTX debtor and the official unsecured creditor committee in each bankruptcy case. Both parties agree to participate in non-binding mediation and establish a framework for the litigation of the remaining disputes, which may pave the way for FTX and Alameda Research to recover their assets. （TheBlock）

Voyager has reached an agreement with Alameda to retain a US $445 million loan

Interpret the above information:

A new court document reveals that Voyager Digital has agreed to retain $445 million after being sued by Alameda Research for repayment of the loan. Voyager’s lawyer filed a motion to seek permission to hold non-binding mediation with FTX debtor and the official unsecured creditor committee in each bankruptcy case. This agreement could potentially pave the way for FTX and Alameda Research to recover their assets.

This announcement comes after months of legal battles between both parties regarding a $5 million loan made by Alameda to Voyager in 2020. Alameda Research is a well-known cryptocurrency trading firm that sued Voyager Digital in May 2021 for non-payment of the loan. Voyager countered by claiming that Alameda used insider information to manipulate the market, causing a margin call that ultimately led to the loan not being paid back on time.

The current market situation has complicated matters further. The recent plummet in the prices of cryptocurrencies has led to a reduction in Voyager’s assets. The firm’s digital assets now stand at $63.06 million, a considerable drop from the $171 million recorded in March.

However, the settlement for $445 million will undoubtedly offer much relief to Voyager. Notably, the agreement to participate in non-binding meditation is a move towards an out-of-court settlement. This will come as a welcome change from the ongoing legal battles and will hopefully pave the way for an amicable resolution.

In conclusion, the settlement between Voyager and Alameda Research is a significant turning point in their longstanding legal battles. Although Voyager has suffered a significant loss in digital assets, the relatively substantial settlement payment promises to ease the firm’s cash flow issues. The agreement to hold non-binding mediation has opened the door to an amicable resolution while offering hope for both parties to recover their assets.

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Voyager Digital Keeps $445M in Alameda Lawsuit Settlement

Voyager has reached an agreement with Alameda to retain a US $445 million loan

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