By Michael Scott
Estates of Voyager Digital and FTX agreed to grant a temporary hold to disputed $445M Alameda loan repayments as the bankrupt firms await the court’s direction.
The dispute arises from a decision by Alameda Research to file a motion in January 2022 seeking to recover the loan repayments remitted to the bankrupt crypto lender.
Estates Heated Debate on Million-Dollar Funds
The FTX’s trading arm sought recovery of the funds citing they were made just before it sought bankruptcy protection.
The January filing left the estates of the two bankrupt firms embroiled in heated debate on the rightful owner of the $445 million. The counter accusations pitting counsel representing estates of the bankrupt firms submitted on February 22 filings their interim agreement.
The counsels unanimously indicated that Voyager Digital would retain the temporary hold as both parties await the court to determine the dispute.
Interim Agreement Reached as Parties Await Court’s Ruling
The interim agreement would allow the court to review the matter and decide later. The parties agreed that Voyager would retain hold on the disputed payments awaiting the resolution or final settlement as ordered by the court.
Alameda Research had petitioned the court to grant it $445.8 million in the January filing. The counsel representing the FTX’s trading arm sought the court’s directive granting it additional fees incurred and value accruing from the additional avoidable transfers it would learn during the petition.
A subsequent filing during the Wednesday, February 22 proceedings indicated that Voyager Digital estate would exercise holding rights to the $5 million disputed deposit it received from FTX.
The filing illustrated that the Voyager estate should refrain from using and distributing the deposit until the New York-based bankruptcy court litigates to ascertain the ownership.
Voyager Digital Exercise Second Hold on $5 Million Deposit
The filing acknowledged that a temporary hold is granted till the court decides on the $5 million deposit through settlement, a final directive, and unappealable orders. The counsels would agree to subject the matter to appeals.
Lawyers representing Voyager notified the court, and parties present that creditors voted 97% in favor of the lender selling its assets in a $1.02 billion sale to Binance.US.
Editorial credit: rafapress / Shutterstock.com
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