According to a court filing, a New York bankruptcy court has ordered a quant trading firm Alameda Research to repay approximately $200 million worth of cryptocurrencies it borrowed from the troubled digital asset lender Voyager Digital.
Voyager had asked Sam Bankman-Fried’s Alameda Research to repay the loan, a request that the court has now granted. The crypto market maker took a loan in the form of cryptocurrencies from Voyager Digital in 2021, which was worth about $380 million at the time. The value of Alameda’s loans has almost halved since then.
Alameda has been compelled to pay approximately 5,553 BTC ($125.4 million) toward the principal amount and accrued fees, as well as 51,000 Ether (ETH) ($69.1 million) before September 30, 2022. The loan also includes smaller sums in other tokens, including Dogecoin (DOGE), USD Coin (USDC), Luna Classic (LUNC), and Voyager’s native asset, VGX.
Voyager will, in response, return the $160 million worth of cryptocurrencies as collateral given by Alameda to back the loan. This collateral includes 4,650,000 FTT tokens ($110.1 million) and 63,750,000 Serum (SRM) tokens ($49.1 million), if the payments are made on time.
If Alameda Research cannot make the payments within the deadline, the Bitcoin installments will increase by 1.07 BTC ($20,633) per day, while the Ethereum segments will see an increment of 9.59 ETH ($12,965) per day.
“For each day or portion thereof that elapses after 5:00 p.m. (New York time) on the Anticipated Payoff Date before Lender receives payment in full of the applicable Payoff Amount (including any accrued per diem Loan Fees or other fees), (i) the BTC Payoff Amount shall increase by 1.07 BTC per day and (ii) the ETH Payoff Amount shall increase by 9.59 ETH per day.“
Before the filing on Alameda on Monday, the crypto lender had asked the federal bankruptcy court to issue an order allowing Voyager to unwind the trading firm’s outstanding loans and return the backing collateral.
“Happy To Return The Voyager Loan” – Alameda Research
In early July this year, Voyager filed for Chapter 11 bankruptcy. At this time, Alameda owed the lender approximately $380 million in loans, as earlier mentioned. These loans were denominated in raw tokens and not in U.S. dollars.
A couple of days later, Alameda tweeted that it was willing to return the loans borrowed from Voyager Digital and have their collateral returned to them. The tweet read:
Alameda had also lent Voyager $500 million to help it navigate the challenging crypto environment. Lately, the relationship between the two crypto companies has been tense as Voyager looks for a buyer in the wake of bankruptcy processes.
Voyager is in the process of liquidating its remaining assets. After reviewing multiple bids, the final decision is set to be announced in court on September 29. FTX, a crypto trading platform, is reportedly among the top contenders to snap Voyager’s distressed assets.