- Sam Bankman-Fried’s Alameda plans to give crypto worth $200 million to Voyager to pay off a loan.
- The loan was worth $377 million before the crypto slump, which helped push lender Voyager into bankruptcy.
- Alameda agreed to make the payment in bitcoin, ether and seven smaller cryptos by the end of September.
Sam Bankman-Fried’s Alameda Research will pay cryptocurrency worth about $200 million to bankrupt lender Voyager Digital to cover an outstanding loan, according to a court filing Monday.
The crypto trading firm borrowed bitcoin, ether and other cryptocurrencies from Voyager in September 2021, worth $376.8 million at the time. Since then, digital currencies across the board have broadly lost half of their value.
Under a bankruptcy court-sanctioned agreement, Alameda will repay the troubled company with around 6,553 bitcoin and 51,000 ether by Sept. 30, and as well as hand over loan fees. It will also make smaller payments in seven other tokens, including dogecoin and litecoin.
For its part, Voyager will return the tokens Alameda pledged as collateral against the loans, including 4.65 million FTT and 63.75 million SRM tokens. FTT is the native token of Bankman-Fried’s FTX crypto exchange, while SRM is issued by Serum, a decentralized exchange.
In July, as Voyager made its first presentation in New York court, Alameda tweeted: “happy to return the Voyager loan and get our collateral back whenever works for voyager.”
Crypto lending platform Voyager filed for Chapter 11 bankruptcy in July, amid a meltdown in prices in the digital-asset market and in the face of its exposure to a hedge fund that failed to repay a multimillion-dollar loan.
Digital currencies have fallen as as high inflation and rising interest rates deter investors from risky assets. The total value of the crypto market has fallen from $1,892 billion a year ago to $935 billion today, CoinMarketCap data shows.
Bitcoin traded at around $19,252 at last check Tuesday, while ether ws changing hands at $1,357.
Investors have also been unsettled by the troubles hitting the crypto industry. Like Voyager, Vauld and Celsius Network were forced to suspend customer withdrawals as a result of the brutal crypto selloff earlier this year.
Bankman-Fried has emerged as a rescuer for struggling crypto firms. In July, the crypto billionaire offered Voyager $250 million in credit, but the crypto lender turned it down.
The FTX boss and Alameda founder also helped out BlockFi. He has been compared to investment banker John Pierpont Morgan, the founder of JPMorgan who bailed out several major New York banks during the 1907 financial crisis.