Voyager subpoenas FTX and Alameda execs as judge orders fee examiner

Share This Post

On behalf of Voyager, law firm Kirkland & Ellis subpoenaed four executives from FTX and Alameda requesting an enormous array of documents.

Lawyers representing bankrupt crypto broker Voyager Digital have served former FTX CEO Sam Bankman-Fried and other FTX and Alameda Research executives with subpoenas requesting information.

The subpoenas have a very wide scope, with Voyager’s lawyers seeking copies of any documents and communication between FTX entities and the Securities and Exchange Commission (SEC) or the Department of Justice (DOJ) according to the Feb. 6 filing.

Amongst a plethora of other requested documents, the lawyers also want to see information relating to the loan portfolio between Alameda and Voyager as well as FTX’s financial condition before and after it filed for bankruptcy on Nov. 11, 2022.

The other executives who were served subpoenas include former Alameda CEO, Caroline Ellison, FTX co-founder, Gary Wang and FTX’s head of product, Ramnik Arora — each was asked to provide the requested information by Feb. 17.

Little is known about Wang (left) who co-founded FTX with Bankman-Fried, Ellison (right) has cooperated with authorities since the exchange’s bankruptcy.

The financial ties between Voyager and Alameda are deep, with Alameda seeking to recover $446 million it repaid Voyager. In a Jan. 30 filing, it argued because it had paid Voyager back within 90 days of filing for its own bankruptcy it can “claw back” the funds for the benefit of its creditors.

In response, Voyager claimed its creditors had suffered “substantial harm” after Alameda made a bid for Voyager’s assets that it was unable to honor, which cost Voyager $100 million and rendered Alameda’s claim subordinate to those of its other creditors.

Related: SBF’s lawyers move to block release of bail guarantors’ identities

Meanwhile, United States bankruptcy judge Michael Wiles said he would be appointing a fee examiner to look at professional fees in Voyager’s Chapter 11 case, according to a Feb. 7 Law360 report.

Wiles reportedly suggested the professional fees incurred within the bankruptcy case were higher than he expected, and the argument provided by the U.S. Trustee had convinced him that a fee examiner would be beneficial.

Wiles did note that an examiner could end up costing the estate more than it would be able to save in other professional fees, however, and recommended a cap was put on the examiners own fees.

Read Entire Article
spot_img

Related Posts

Legal Action Forces US Energy Department to Suspend Crypto Mining Investigation

Following legal action initiated by Riot Platforms and the Texas Blockchain Council against the US Department of Energy (DOE), the department’s statistical branch, the Energy Information

Bitcoin’s Scalability Foreseen by Satoshi Nakamoto to Outpace Visa, Historic Email Reveals

This week, crypto enthusiasts and historians alike have found themselves enraptured by the wealth of newly released emails from Satoshi Nakamoto, uncovering the visionary’s early efforts with

Cosmos co-founder says GovGen will show how governance can be used in blockchain development

In November 2023, the Cosmos Hub community approved the contentious proposal 848, which reduced the maximum inflation rate of the native token ATOM to 10% from 20% At the time, ATOM’s actual

Solana Drops Below 100-Day MA On 4-Hour Chart, SOL Price In Danger?

Having failed to break its previous high for the year, the price of Solana has continued to move downward From the height of $11888, the coin, which is currently ranked 5th in the crypto space with a

Let’s Get Ready To Rumble! Cardano And X Community Team Up To Defend Bitcoin Against ECB

Amidst the ongoing debate surrounding the legitimacy of Bitcoin, Cardano founder Charles Hoskinson and the X community are taking a firm stand against the European Central Bank’s (ECB)

Stablecoin Market Jumps by Over $2.5 Billion in 10 Days, Led by Rise in Key Players

In the opening fortnight of February, the stablecoin domain expanded by $17 billion, marking a significant rise The value of the fiat token crypto market has once again risen witnessing an increase
- Advertisement -spot_img