Alameda Research, a quantitative trading firm founded by Sam Bankman-Fried, is anticipated to give about $200 million back to Voyager Digital VYGVQ, which filed for bankruptcy earlier this year.
In September 2021, Alameda borrowed almost $380 million in cryptos from the beleaguered firm.
Alameda is to return BTC, ETH, FTT, and SRM
Alameda will return about 6,553 Bitcoin BTC/USD and 51,000 Ethereum ETH/USD by Sept. 30 according to an agreement the parties recently filed in the Bankruptcy Court of Southern District of New York.
The company will also have to return the collateral in the form of 4.65 million FTX tokens FTT/USD and 63.75 million Serum SRM/USD, amounting to $160 million.
The company has been going through Chapter 11 bankruptcy proceedings since July, and in September it started selling off its assets so that some of the money might be given back to its customers.
Alameda turns from borrower to lender
The relationship between Voyager and Alameda has been emphasized in court hearings and financial papers during the bankruptcy process.
When Voyager ran into issues in June, Alameda switched from being a borrower to a lender and offered a $500 million rescue package.
However, a public dispute erupted between the two platforms as a result of Voyager's refusal to accept a buyout on the grounds of users' safety.
According to Voyager's financial records, it provided a platform in the British Virgin Islands, where Alameda is located, with crypto loans totaling $1.6 billion.
Alameda reportedly held the largest position in Voyager, acquiring an 11.56% ownership through two transactions at a $110 million valuation.
Following the collapse of the global crypto market in early 2022, crypto lending platforms like Celsius, BlockFi, and Hodlnaut have struggled to carry on with their business activities.
Disclosure: Benzinga CEO Jason Raznick is a member of the unsecured creditor committee in the Voyager Digital bankruptcy case.
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