Claim Giveaway Token Proof of Reserve

Voyager to Bring FTX And Alameda Executives to Court

  • Wiles claimed that the bankruptcy case's professional expenses exceeded his expectations, and the U.S. Trustee's reasoning convinced him that employing a fee examiner would be beneficial.

  • Wiles warned that employing an examiner would wind up costing the estate more than it would save on other professional fees, and he proposed capping the examiner's own fees.


Voyager to Bring FTX

Kirkland & Ellis, a law firm, served subpoenas on four officials from FTX and Alameda on behalf of Voyager, asking them to produce a vast assortment of information.

Lawyers representing the bankrupt crypto broker Voyager Digital have served subpoenas to former FTX CEO Sam Bankman-Fried and other FTX and Alameda Research executives, requesting a wide range of information. According to the Feb. 6 filing, the subpoenas request copies of any documents and correspondence between FTX entities and the Securities and Exchange Commission (SEC) or the Department of Justice (DOJ).

In addition to the requested documents, the lawyers are also seeking 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.

Other officials charged with subpoenas include former Alameda CEO Caroline Ellison, FTX co-founder Gary Wang, and FTX's head of product, Ramnik Arora – each was given until Feb. 17 to submit the needed material.

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 relationship between Voyager and Alameda is complex, with Alameda attempting to reclaim the $446 million it had previously paid to Voyager. In a January 30th filing, Alameda argued that since the repayment had been made within 90 days of filing for bankruptcy, it should be able to "claw back" the funds for the benefit of its creditors.

In response, Voyager asserted that its creditors had experienced "significant damage" after Alameda had made a bid for Voyager's assets that it was unable to fulfill, resulting in a loss of $100 million and making Alameda's claim subordinate to those of its other creditors.

Meanwhile, U.S. Bankruptcy Judge Michael Wiles announced his decision to appoint a fee examiner to review the professional fees associated with Voyager's Chapter 11 case, as reported by Law360 on February 7th.

According to reports, Wiles said that the professional fees associated with the bankruptcy case were greater than he had anticipated, and the U.S. Trustee's justification had persuaded him that hiring a fee examiner would be advantageous.

However, Wiles cautioned that hiring an examiner would end up costing the estate more than it could save on other professional fees and suggested putting a cap on the examiner's own fees.

Also, Read - Binance Airdrop Crypto To Turkey Users: Donate Here

WHAT'S YOUR OPINION?
Related News
Related Blogs
`