Voyager subpoenas FTX and Alameda execs as judge orders fee examiner

Lawyers representing bankrupt crypto broker Voyager Digital person served erstwhile FTX CEO Sam Bankman-Fried and different FTX and Alameda Research executives with subpoenas requesting information.

The subpoenas person a precise wide scope, with Voyager’s lawyers seeking copies of immoderate documents and connection betwixt FTX entities and the Securities and Exchange Commission (SEC) oregon the Department of Justice (DOJ) according to the Feb. 6 filing.

Amongst a plethora of different requested documents, the lawyers besides privation to spot accusation relating to the loan portfolio betwixt Alameda and Voyager arsenic good arsenic FTX’s fiscal information earlier and aft it filed for bankruptcy connected Nov. 11, 2022.

The different executives who were served subpoenas see erstwhile Alameda CEO, Caroline Ellison, FTX co-founder, Gary Wang and FTX’s caput of product, Ramnik Arora — each was asked to supply the requested accusation by Feb. 17.

Little is known astir Wang (left) who co-founded FTX with Bankman-Fried, Ellison (right) has cooperated with authorities since the exchange's bankruptcy.

The fiscal ties betwixt Voyager and Alameda are deep, with Alameda seeking to retrieve $446 million it repaid Voyager. In a Jan. 30 filing, it argued due to the fact that it had paid Voyager backmost wrong 90 days of filing for its ain bankruptcy it tin “claw back” the funds for the payment of its creditors.

In response, Voyager claimed its creditors had suffered “substantial harm” aft Alameda made a bid for Voyager’s assets that it was incapable to honor, which cost Voyager $100 million and rendered Alameda’s assertion subordinate to those of its different creditors.

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Meanwhile, United States bankruptcy justice Michael Wiles said helium would beryllium appointing a interest examiner to look astatine nonrecreational fees successful Voyager’s Chapter 11 case, according to a Feb. 7 Law360 report.

Wiles reportedly suggested the nonrecreational fees incurred wrong the bankruptcy lawsuit were higher than helium expected, and the statement provided by the U.S. Trustee had convinced him that a interest examiner would beryllium beneficial.

Wiles did enactment that an examiner could extremity up costing the property much than it would beryllium capable to prevention successful different nonrecreational fees, however, and recommended a headdress was enactment connected the examiners ain fees.