Alameda Research Owes Voyager Digital $377 Million: Report

Sam Bankman’s Fried company Alameda Research owes Voyager Digital $377 million and it is the second-largest borrower after Three Arrows Capital according to the Chapter 11 bankruptcy filing so let’s read more today in our latest cryptocurrency news.

It is not often the borrower bails out the lender especially when the debt is up to a hundred million dollars. However, the crypto company founded by Sam Bankman Fried Alameda Research owes Voyager Digital millions and extended a $500 million line of credit even as the Chapter 11 bankruptcy shows. It is an unexpected revelation that came to light after the bankruptcy was filed and Voyager disclosed that the hedge fund Three Arrows Capital owes it more than $600 million. The table on page 13 of the bankruptcy filing shows that Alameda owes Voyager $377 million with an interest rate of 1% to 5% and the outstanding balance included a $75 million unsecured loan according to the claims on page 119.

Alameda’s debt makes it the second biggest borrower after the insolvent Three Arrows Capital which goes by 3AC as well. When the extent of 3AC’s trouble became clear because the $200 million were lost in the Terra collapse, the lenders started realizing that the huge 3AC loans on their books were about to go default. Once 3AC was no longer able to make payments, Voyager issued a default notice, and then the British Virgin Islands court-ordered 3AC to liquidate. This means that the company has to cease all operations and allow the courts to oversee the sale of the assets to offset what it owes the creditors like Voyager.

It’s worth pointing out that Sam Bankman Fried as the founder and CEO of FTX crypto exchange, vested interest in seeing Voyager being whole again. At one point, Alameda and the venture branch were the largest Voyager shareholders with 11.6% of the shares according to the data. A week later, Alameda announced that it surrendered or returned in exchange for no money and 4.5 million of the shares. Those shares were worth $2.6 million.

Alameda’s share surrender brought the stake in the company to 9.49% below the 10% threshold which will have made it an insider in the eyes of the US SEC. This is the same SEC rule which required Tesla CEO Elon Musk to disclose the stake before making an acquisition offer. After the Toronto Stock Exchange suspended trading of Voyager Digital’s stock, it ended the day trading at $0.27.