Aaryamann Shrivastava
FXStreet
- Alameda Research blamed Voyager Digital for its role in the FTX bankruptcy, calling it a feeder fund.
- Court filings show that Alameda Research is looking to recover the loan repayments it made to Voyager.
- FTT price followed the broader market cues, remaining sideways bound around the $2 mark.
The FTX saga took a rather interesting turn on Monday after the bankrupt cryptocurrency exchange's sister company, Alameda Research, filed a lawsuit against another bankrupt crypto lender, Voyager Digital. Seeking recovery of the loan repayments made by Alameda, the company dragged Voyager to court.
FTX, Alameda Research and Voyager Digital
FTX-linked Alameda Research, in a court filing on Monday, demanded to regain the loan repayments it made to Voyager Digital. Amounting $445.8 million, the repayments were made just prior to Alameda's own bankruptcy filing.
Alameda had made the transfers to Voyager Digital after the crypto lender filed for bankruptcy protection. However, at the moment, Alameda is shifting the blame to Voyager itself, claiming that the crypto lender had a hand in FTX's collapse.
As per court documents, Alameda called Voyager a feeder fund and that little to no due diligence was conducted before it invested retail clients' money.
The filing further added,
"Largely lost in the (justified) attention paid to the alleged misconduct of Alameda and its now-indicted former leadership has been the role played by Voyager and other cryptocurrency 'lenders' who funded Alameda and fueled that alleged misconduct, either knowingly or recklessly."
Alameda, in the lawsuit filing, specified that the loans made out by Voyager to the company were in the form of crypto assets, including Bitcoin, Ethereum, Litecoin, Dogecoin, USD Coin (USDC) and more. Going forward through the lawsuit, Alameda intends to recover the $445.8 million and any additional amount, including the legal fees.
FTT price loses its uptrend momentum
FTT price is bound to the rest of the crypto market as the altcoin painted another red candle on Monday to keep the cryptocurrency in a sideways momentum. While it may have invalidated the uptrend, at the moment, FTT is not facing any major selling, keeping its price around the $2 mark.
FTT/USD 1-day chart
Although FTT is more susceptible to a price fall than any other asset due to the uncovering of new information related to FTX's bankruptcy proceedings, the bullishness in the broader market should keep the asset safe from a significant decline.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Celebrity meme coins controversy continues amid Pump.fun revenue dominance
Pump.fun outperformed the Ethereum blockchain on Tuesday after raking in $1.99 million. Following this achievement, a meme coin based on actress Sydney Sweeney was the subject of controversy after its developers dumped their bags on investors.
PEPE's on-chain metrics indicate potential rally after weeks of silence
PEPE has struggled to see any significant price move after reaching an all-time high in May. Increased adoption rate and low MVRV ratio indicate a bullish run may be on the horizon. A single PEPE outflow from Binance worth $14.7 million gives credence to signs of bullish expectation.
Ethereum has failed to overcome key resistance despite bullish sentiment surrounding ETH ETF
Ethereum (ETH) is down more than 1.4% on Tuesday following another ETH sale from the Ethereum Foundation. Meanwhile, crypto exchange Gemini's recent report reveals that ETH ETF could see about $5 billion in net inflows within six months of launch.
Crypto community blasts Polkadot following report of treasury spending
Polkadot reports $87 million of treasury spending during H1. Crypto community members expressed harsh feelings toward the DOT team's high spending. DOT is up more than 2% in the past 24 hours but risks correction following the report.
Bitcoin: BTC price correction could end in July, according to seasonal data
Bitcoin (BTC) price appears poised for a decline this week, influenced by slight outflows in US spot ETFs, selling activity among BTC miners, and a combined transfer of 4,690.28 BTC to centralized exchanges by the US and German governments.