Cryptocurrency brokerage Voyager Digital has filed for bankruptcybankruptcy filing, Alameda has borrowed from Voyager Digital, the amount is second only to 3AC, which also attracted criticism from Binance founder Zhao Changpeng. But then SBF accepted "WSJ" to clarify the matter, and countered: If you don't understand the bankruptcy law, you can ask me.
The Lehman moment of the crypto market continues to bleed the community. Voyager Digital, a cryptocurrency brokerage, filed for bankruptcy a few days ago. According to bankruptcy documents, Alameda borrowed $376 million from Voyager, second only to the amount owed by Three Arrows Capital (3AC). This incident attracted the attention of the community, because Alamema provided a loan line to Voyager before bankruptcy to ease the liquidity crisis.
The founder of Binance even directly commented that he could not keep up with the speed of the car and it was hard to follow. In short, CZ questioned why FTX/Alameda had money to lend to 3AC, but didn't reach out to pay them back when Voyager went bankrupt.
CZ intwitter wrote：
“So, 3AC owed Voyager hundreds of millions of dollars and ended up bankrupt. FTX/Alameda gave 3AC $100 million, but 3AC ended up bankrupt.
Alameda invested in Voyager, but at the same time lent money to Voyager... well...
In the end, Voyager went bankrupt. Did FTX not lend money to Voyager or pay back the money during this process?
Hard to follow. "
In this regard, SBF stated that lending money to Alameda is just Voyager’s daily business, which is different from the emergency credit Alameda provided to Voyager when the liquidity crisis occurred, and responded on Twitter: If you don’t understand the bankruptcy law, you can ask me.
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What SBF Says
SBF in an interview with The Washington JournalaccessShi said that Voyager’s daily business is to provide high-interest loans to others, and after the loan expires, return the money plus interest to users, and earn the middle interest rate difference. And those loans for day-to-day business are not the same thing as Alameda's emergency line of credit in bankruptcy.
In fact, every loan has a maturity date, and Alameda may have other arrangements before the loan from Voyager is due.
For example, these $376 million in assets may be used by Alameda in different places, such as buying some short-term corporate bonds or lending them to others, so for Alameda, they also have to be used by Alameda after the corporate bonds or loans mature. , to recover the money.
Therefore, the emergency credit line provided by Alameda at the time of bankruptcy, including 200 million US dollars in cash and 15,000 bitcoins, is another fund provided, and the source of the funds is not the loan from Voyager.
It is worth mentioning that although Alameda's loan amount is close to 500 million US dollars on the book, the amount that can be provided on the 30th is only 75 million US dollars. It also means that Alameda expects to receive another payment after the 30th to cover the $75 million it borrowed.
SBF said in an interview:
"Voyager's day-to-day business is to provide high-interest loans to people, which is different from the emergency line of credit that Alameda provided in bankruptcy.
Alameda will eventually pay back the money, and the money may be used to pay back Voyager users. "
The arrangement of an institution's balance sheet is complex and interlocking. Company A has to pay back the money to Company B this week, and Company A may be able to pay Company B only after Company C repays the loan on schedule. Once there is a problem with liquidity in the near future, it may go bankrupt.
The reason Voyager filed for bankruptcy was not because it was really out of money.
According to the documents, their "assets" are between 1 billion and 10 billion US dollars, while their liabilities are also 1 billion to 10 billion US dollars. It’s just that not all of these assets are liquid. They may be bonds or loans. These things need to mature before they can become liquid dollars.
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SBF strikes back: if you don’t understand, you can ask us
In the interview, SBF admitted that Voyager’s filing for bankruptcy is unfortunate news for Alameda, implying that it will bring losses to Alameda, but then added that this is a common thing in investment.
In response to Zhao Changpeng's question of "why FTX didn't save Voyager", SBF said:
"If you're deciding to save a company that's already declaring bankruptcy, you're probably not thinking about your own company."
TwitterTwitterresponse:
"It's nice to have people who are willing to help the industry, although deducting those who pretend to want to help, there are very few such people. But I would prefer that some of these people will ask legal counsel first and understand how bankruptcy works... Or , you can ask us directly and ask us to clarify. I am always happy to clarify!"
———SBF (@SBF_FTX)July 7, 2022
