An attempt by defunct crypto trading firm Alameda Research to extract $446 million it made in loan repayments to bankrupt Voyager Digital has been rejected by both the creditors’ committee and Voyager itself, according to court filings.

Voyager creditors argued that Alameda’s claims should either be equitably subordinated to all other creditor claims, or recharacterized as equity.

The creditors said that Alameda’s “inequitable and fraudulent conduct” cost Voyager and the creditors between $114 million to $122 million. The creditors cited prior caselaw that says the court may “rearrange the priorities of creditors’ interests and to place all or part of a wrongdoer’s claim in an inferior status, in order to achieve a just result.”

Alameda, according to the creditors, made a series of false statements to Voyager and its creditors’ committee about its financial strength claiming at one time to have a “bottomless sea of ordinary cryptocurrency."

These claims are why Voyager’s creditors’ committee voted to support the selection of Alameda as the buyer of Voyager’s balance sheet by the slimmest of margins, according to court filings.

(By Sam Reynolds)

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