•Bankrupt digital lender Voyager called recent accusations from Alameda Research surrounding its deal with Binance.US “frivolous.”
• In a filing posted last week, Alameda launched a plethora of criticisms, saying the $1 billion acquisition deal “ignores fundamental requirements and protections of the Bankruptcy Code.”
• Today’s filing from Voyager in response accused Alameda of “hypocrisy and chutzpah at its finest,” pointing to how the firm has defrauded its debtors and “most of the world.”
• Voyager agreed to sell its remaining assets to Binance.US in December, in a move it said will “a clear path forward for Voyager customer funds to be unlocked as soon as possible.
The digital asset lending firm Voyager Digital (Canada) Ltd. filed for bankruptcy after months of speculation about its financial health. This news was followed by an open letter from Alameda Research, a crypto trading firm, accusing Voyager of defrauding its debtors and engaging in illegal activities.
In response, Voyager has vehemently denied these allegations and has taken steps to address the concerns raised by creditors and regulators. In this blog post, we will discuss the accusations leveled against Voyager Digital and the potential implications for Binance US if it completes a transaction with the now-bankrupt firm.
Details on Accusations from Alameda Research
In their open letter to Voyager Digital, Alameda Research alleged that the Canadian crypto firm had “defrauded” its debtors by not disclosing all of its assets prior to filing for bankruptcy.
They also said there were issues with the legality of a proposed deal between Binance US and Voyager that would have seen Binance take control of some of Voyager’s assets in exchange for liquidity support.
Finally, they raised questions about whether or not Binance had received enough disclosure from Voyager in order to complete such a transaction without running afoul of SEC regulations.
Response from Voyager Digital
In response to these allegations, Voyagers issued a statement calling them “frivolous” and denying any wrongdoing on their part. They said they had taken all necessary steps to ensure that all creditors were properly informed about their financial situation prior to filing for bankruptcy and that they were confident that any proposed transaction between themselves and Binance would be legal and compliant with all applicable laws.
Potential Implications for Binance US
The completion of this transaction could present a number of risks for Binance US if it is found that they have engaged in fraudulently activities related to this transaction or violated SEC regulations in any way. These risks may include possible litigation from aggrieved parties as well as fines and other penalties from the SEC itself. Additionally, there is also a risk that Binance’s reputation may be tarnished due to its association with this controversial transaction and subsequent fallout from it.
More than spoken?
The bankruptcy filing by crypto lending firm Voyager Digital has sparked controversy over allegations made against them by Alameda Research regarding defrauding debtors and engaging in illegal activities related to their proposed deal with Binance US.
While Voyagers denies any wrongdoing on their part, there are still potential risks posed to Binance if they go through with completing the transaction including possible legal repercussions from aggrieved parties or government bodies like the SEC as well as damage done to their reputation due to their association with this scandalous affair.For now, it remains unclear what will happen next but one thing is certain—the consequences could be far reaching if proper precautions are not taken by both sides involved in this deal moving forward.