Financial documents of Voyager revealed that they lent nearly $1.6 billion in crypto loans to an entity registered in the British Virgin Islands, the same place Alameda is registered.
As a result of Three Arrow Capital’s (3AC) insolvency, Voyager Digital, the crypto lending firm that went bankrupt is currently fighting its bankruptcy court battle. Sam Bankman Fried’s Alameda Research has been linked to the crypto lending firm as discovered be the court proceedings and financial documents.
Alameda was one of many borrowers from Voyager and reportedly owed $370 million. Within a span of a few weeks after 3AC’s downfall, Alameda moved to lender and offered a $500 million bailout to Voyager in late June.
In addition to FTX taking over Japanese crypto exchange Liquid, they have also discussed to acquiring the owner of South Korean crypto exchange Bithumb.
SBF took to Twitter to provide insight on the bailout deal that ultimately caused conflict for Voyager. The troubled lender’s legal team claimed that the CEO was seeking to gain advantage for the trade.
According to legal documents and financial documents, the ties between the two companies were established as early as September 2021. Alameda borrowed much more initially than the current amount of $370M, according to the same documents. As stated in Voyager’s financial books, it was indicated that it lent out $1.6 billion in crypto loans to an entity based in the British Virgin Islands, the same jurisdiction where Alameda is registered.
According to the legal documents that verify Voyager’s loan to 3AC, there was also a “Counterparty A” registered in the British Virgin Islands, owing them $376.784 million. Voyager has shown Alameda owes them $377 million in its bankruptcy presentation
Aside from this, Alameda was also the largest stakeholder in Voyager, with an 11.56% stake in the company acquired through two investments for a total combination of $110 million. Its investment was worth $17 million when it completed the $500 million bailout. The company surrendered 4.5 million shares to avoid reporting requirements early this year, bringing its equity down to 9.49%.
Voyager CEO Stephen Ehrlich said that many crypto holders on the platform may be able to get back some of their assets along with common shares in the reorganized Voyager, Voyager tokens and proceeds from the now-defunct loan to 3AC, after the bankruptcy court proceedings.
The crypto contagion began with the now-defunct Terra stablecoin called TerraUSD (UST), which eventually bring the $40 billion ecosystem down to its knees. There are many crypto hedge funds and lending firms exposed to Terra lost millions of dollars, which eventually led to the insolvency of 3AC, followed by the downfall of crypto leaders such as Celsius, BlockFi, Hodlnaut and Voyager.