In a turn of events, Voyager’s creditors have refused Alameda Research’s appeal to retrieve $446 million in assets following a veto by Now-defunct Voyager itself.
The refusal of Alameda’s request has stirred reactions throughout the cryptocurrency community, with many wondering what this means for the future of the exchange.
Voyager And Alameda Loan Dispute
This event goes way back to cryptocurrency exchange Voyager suffering a major loss in February 2021.
The loss was attributed to a crash in the cryptocurrency market, which caused a drop in the value of many.
This crash resulted in millions of dollars in losses for Voyager and its customers, who held their assets.
In an attempt to recover its losses, Alameda Research offered to purchase Voyager balance sheets for $446 million.
According to Voyager’s creditors, they claimed Alameda Research made false statements about the financial stability of its firm, which led the creditors to vote in the firm as the buyer of their balance sheet with a very slim margin.
The creditors further stated that if they were not ignorant of Alameda’s false claims they would not have allowed the deal to go through.
As at January of this year, the court approved a Binance-Voyager deal to purchase Voyager’s assets after FTX exchange suffered liquidation and filed for bankruptcy protection.
Coming down to this recent rejection, this sparked a dispute between Alameda and Voyager, with Alameda alleging that the exchange owed it $446 million.
In response, Voyager’s creditors claimed that the firm suffered way more losses due to Alameda’s false representation of the FTX financial stability and therefore refused his appeal to retract the $446 million.
Binance-Voyager Deal
Many crypto community members are speculating about what this rejection means for the future of Voyager and Alameda Research.
However, the scale of balance seems to tilt to Voyager’s side as it already acquired a whopping sum from Binance to acquire its assets which the court approved despite controversies from the Securities and Exchange Commission (SEC).
Regardless of the outcome, this rejection by Voyager’s creditors might have intense consequences for the cryptocurrency industry.
It further stresses the volatile nature of the cryptocurrency market and the potential for significant losses for those who invest in it.
It also highlights the importance of due diligence for those considering investing in cryptocurrencies. Before investing, it is crucial to thoroughly research the market and the company you consider investing in, to ensure that you are making a well-informed decision.
This whole dispute will be closely monitored by those in the industry in the coming months.
The outcome of this dispute will set a stage for future cases involving cryptocurrency exchanges and who takes responsibility for losses incurred in the volatile cryptocurrency market.
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