A recent report from Voyager Digital reveals that Alameda Research owes the company $376 million. In Voyager’s chapter 11 bankruptcy filing, Alameda Research gets the rank of the second-largest debtor to the company. Above Alameda Research is Three Arrows Capital which has an outstanding debt of $654 million.
While it is not unusual for large institutions to have a number of debtors on their list, the Alameda incident comes off as surprising. Earlier, Alameda Research extended a $500 million line of credit to Voyager digital, the same company it owes $376 million.
Alameda Research has established a reputation as one of the largest liquidity providers in the crypto ecosystem. The company has bailed out a number of large institutions when market conditions become unfavorable. Onlookers were in fact expecting Alameda Research to step in once again, to save Voyager Digital from licking the dust.
Notably, Alameda was the single largest holder of Voyager’s shares sometime last month. Alameda Research x Alameda Ventures owned over 11% of Voyager’s outstanding shares as of June 17. However, Alameda gave off over 2% of its holdings for free to avoid being tagged an “insider” in line with US laws.
Voyager Digital’s Road to Bankruptcy
Last week, Voyager digital suspended trading, deposits, withdrawals, and rewards. The company cited that it had exposure to Three Arrows Capital, and 3AC’s huge depth had impacted the company negatively.
Commenting on the decision to freeze its activities, Stephen Ehrlich, the company’s CEO stated:
“This was a tremendously difficult decision, but we believe it is the right one given current market conditions. This decision gives us additional time to continue exploring strategic alternatives with various interested parties while preserving the value of the Voyager platform we have built together.”
The whole saga surrounding the company has also led to a plummet in its stock prices. The VYGVF share price is currently down by 97%.
