Alameda Research, owned by FTX founder Sam Bankman-Fried, will be returning $200m to insolvent cryptocurrency brokerage Voyager Digital by the end of the month, the company confirmed.
Alameda, which borrowed about 6,553 Bitcoin and 51,000 Ether has decided to return the tokens, along with additional USDC, DOGE and SAND assets, to the financially challenged company.
This is part of Alameda’s efforts to ensure that consumers are protected, and that Voyager exits the difficult financial period.
Voyager Digital is now going through Chapter 11 bankruptcy proceedings after the company filed for insolvency and triggered a massive review of its operations.
More than 100,000 creditors now have $1.1bn in outstanding loans with the company. Bankman-Fried is also attempting to purchase Voyager through FTX, as the billionaire is hoping to consolidate his grasp over the sector.
However, Voyager has said that it does not feel like the offer made for its assets accurately reflects its true value. Nevertheless, Bankman-Fried’s company has decided to return the assets and help ease creditors’ pain.
Alameda was also the biggest stakeholder in Voyager, owning 11.56% of the company. However, the company decided to reduce its share to 9.49%, reportedly to avoid reporting requirements.
Voyager is not the only company to have struggled with others, including Celsius, BlockFi and Holdnaut all undergoing similar proceedings.