The dispute between bankrupt crypto lender Voyager and crypto exchange FTX over $445 million of loan payments has reached an interim agreement. According to filings from Wednesday, Voyager will keep hold of the disputed funds until the court order or a final settlement is reached.
In January, Alameda Research, the trading arm of FTX, filed a lawsuit to reclaim some of the loan repayments made to Voyager before its own bankruptcy filing. The lawsuit asked the court to award no less than $445.8 million (plus the value of any additional avoidable transfers) and any additional fees incurred. Additionally, Voyager will also continue to hold another $5 million deposit from FTX without use or distribution until ownership of that deposit is litigated in the New York Bankruptcy Court.
During the Wednesday court hearing, lawyers for Voyager said that a plan to sell the bankrupt lender’s assets to Binance’s U.S. arm was underway, with 97% of creditors voting in favor of the sale. FTX’s own bankruptcy proceedings are continuing at a Delaware court.
The interim agreement between Voyager and FTX is a positive step towards resolving the dispute over the loan payments. It remains to be seen how the court order or final settlement will affect the ownership of the disputed funds. In the meantime, the sale of Voyager’s assets to Binance’s U.S. arm is “full steam ahead” according to counsel.