Kirkland & Ellis issued a subpoena to Sam Bankman, co-founder of FTX, and other FTX officials in lieu of Voyager Digital on February 6, 2023. The subpoena called for the production of emails, text messages, and other communications relating to the “Alameda Credit Agreement” between Voyager and Alameda Ventures.
Caroline Ellison, the former Chief executive of Alameda Research, and Gary Wang, the co-founder of FTX, have both been appointed by Voyager Digital.
These actions come just a week after FTX filed a separate lawsuit against Voyager Digital seeking $445.8 million in loan repayments made before FTX’s bankruptcy in November of last year.
FTX’s trial to rescue Voyager Digital
In the previous year, FTX US attempted to rescue Voyager, a failed regulated cryptocurrency exchange with 3.5M members and $1.3B worth of assets. According to Bankman-Fried, customers whose accounts have been held because of Voyager’s credit limitation would be able to access their funds due to the arrangement.
However, in October 2022, the Security Board in Texas protested the transaction, saying that FTX was not registered with the Texas Department of Banking as a funds transmitter.
Also, in the lawsuit, Voyager’s lawyers demand that the US Justice Department and the SEC turn over any evidence they have gathered in their investigation of the fraud scheme (SEC). Both probes have been put on hold while FTX is being prosecuted criminally.
Legal power demands information
From Ellison Admissions, Wang Admissions, and a request by Voyager’s attorneys for documents associated with the confirmation of John Ray III as the new CEO of FTX all amounted to jurisdictional demands.
SMS, Slack, Signal, and Telegram messages sent and received by these individuals are also being sought. The correspondence between Binance’s CEO and founder (CZ) Zhao and Bankman-Fried is available as of July 24, last year.
FTX has committed $1.42B to buy out Voyager’s clients and compensate them in full after the latter filed for bankruptcy protection. The investors were to get an 8 percent premium over the assets’ market value in their accounts before becoming FTX US users.
Voyager’s legal department has asked for “trading logs relevant in any form to VGX digital asset” from “FTX-related entities” between April 11, 2019, and November 11, 2022.
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