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Voyager Subpoenas FTX and Alameda Execs as Judge Orders Fee Examiner

Kirkland & Ellis, a legal firm, subpoenaed four officials from FTX and Alameda on behalf of Voyager, asking for a massive amount of records.

Subpoenas for information have been filed on former FTX CEO Sam Bankman-Fried and other FTX and Alameda Research officials by lawyers representing insolvent crypto broker Voyager Digital.

According to the February 6 filing, the subpoenas have a broad reach, with Voyager’s attorneys demanding copies of all documents and communications between FTX corporations and the Securities and Exchange Commission (SEC) or the Department of Justice (DOJ).

Among other things, the attorneys seek to obtain information on the loan portfolio between Alameda and Voyager, as well as FTX’s financial status before and after it filed for bankruptcy on November 11, 2022.

Other officials charged with subpoenas include former Alameda CEO Caroline Ellison, FTX co-founder Gary Wang, and FTX’s director of product, Ramnik Arora – each was given until February 17 to submit the needed material.

Voyager and Alameda have solid financial links, with Alameda attempting to recoup the $446 million it owes Voyager. It asserted in a January 30 filing that because it paid Voyager back within 90 days of declaring for bankruptcy, it could “claw back” the monies for the benefit of its creditors.

In response, Voyager claimed that its creditors had suffered “significant injury” due to Alameda’s offer for Voyager’s assets, which it was unable to meet, costing Voyager $100 million and making Alameda’s claim subordinate to that of its other creditors.

Meanwhile, according to a February 7 Law360 story, U.S. bankruptcy judge Michael Wiles indicated he would appoint a fee examiner to look into professional costs in Voyager’s Chapter 11 case.

According to Wiles, the professional costs expended throughout the bankruptcy process were more significant than projected. The rationale supplied by the U.S. Trustee convinced him that a fee examiner would be advantageous.

However, Wiles cautioned that an examiner might cost the estate more than it could save in other professional expenses. He suggested putting a ceiling on the examiner’s fees.

 

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