PEOPLE

Co-founders engage in a war of words! CZ: Save Voyager by repaying first? SBF: Understand bankruptcy procedures first.

share
Co-founders engage in a war of words! CZ: Save Voyager by repaying first? SBF: Understand bankruptcy procedures first.

The cryptocurrency broker Voyager has filed for bankruptcy in a New York court on Wednesday, according to court documents. Alameda Research, founded by FTX CEO SBF, has complex lending relationships with Voyager. In response to this event, Binance founder CZ seems to have some comments, and SBF also issued a response today.

Voyager Files for Bankruptcy

According to the bankruptcy filing submitted by Voyager, the borrower schedule on page 13 reveals that Three Arrows Capital is the largest debtor, owing approximately $650 million, while the second-largest debtor is Alameda Research, owing around $370 million.

However, in the content on page 14 of the documents, it is discovered that although Alameda Research is listed as a debtor, they provided Voyager with a $500 million credit line in June this year, including $200 million in USDC and 15,000 bitcoins. They are essentially both a creditor and a debtor for hundreds of millions of dollars simultaneously.

CZ's Perspective

According to a previous press release by Voyager announcing the suspension of user withdrawals and bankruptcy, CZ expressed on Twitter that the significant reason for Voyager's current dilemma stems from 3AC's $650 million debt. However, it was found in the bankruptcy filing that Alameda Research, although capable of repaying, chose to assist Voyager through a credit line, which CZ finds incomprehensible.

CZ mentioned that even with FTX/Alameda's $100 million aid, it would not have prevented Voyager's bankruptcy caused by 3AC's debts. Despite being an investor in Voyager, Alameda did not choose to help them out when Voyager was on the brink of bankruptcy, and they did not even repay the $377 million debt.

Interpreting Alameda's Actions

In response to this, well-known cryptocurrency writer James shared his views on Facebook, stating that loans have terms, and as a borrower, Alameda could have made their own arrangements before the term was up, hence opting to provide $200 million in aid through a credit line. To accuse Alameda of causing Voyager's bankruptcy, it must be proven that the liquidity problem was due to Alameda's failure to repay.

Otherwise, according to previous reports, Voyager's bankruptcy was primarily due to 3AC's overdue debts, leading to a lack of funds for repayment on the due date, resulting in bankruptcy.

SBF Clarifies, Alameda Willing to Repay Debt

However, the day after CZ's post, SBF shared his thoughts on Twitter, seemingly responding to CZ's doubts.

"Always happy to see people interested in helping this industry. If it's just pretending, that's fine, but hopefully, some of them will ask their legal team how bankruptcy works. Or they can ask us; I'm always happy to respond." SBF stated.

Additionally, in an interview with The Wall Street Journal, SBF mentioned that Voyager's daily business involves providing loans to others, which is unrelated to Alameda's recent emergency credit line. Alameda will eventually repay the debt and can be used to repay user debts.

Alameda has also expressed willingness to repay the debt to Voyager today and reclaim their collateral. However, this is contingent on Voyager being able to repay the full collateral.