On February 6, 2023, the law firm of Kirkland & Ellis issued a subpoena to FTX co-founder Sam Bankman-Fried and senior executives on behalf of Voyager Digital. The subpoena requested that they produce documents and communications related to the “Alameda Loan Agreement” between Alameda Ventures and Voyager, as well as other important documents. Additionally, Voyager Digital cited former Alameda Research CEO Caroline Ellison, FTX co-founder Gary Wang, and former FTX head of product and investor relations Ramnik Arora.
Kirkland & Ellis Law Firm Requests Documentation For Proposed Settlement Between FTX And Voyager
Kirkland & Ellis, the law firm representing now-bankrupt cryptocurrency lender Voyager Digital, has sent a citation to former FTX and Alameda staff, including Sam Bankman-Fried, Caroline Ellison, Gary Wang and Ramnik Arora. The attorneys request that the parties produce all documentation and communications associated with the Voyager deal between Alameda Ventures and West Realm Shire Inc., also known as FTX.
Before the FTX collapse, FTX and Bankman-Fried insisted that the cryptocurrency exchange would help Voyager clients get liquidity in July 2022. Bankman-Fried tweeted that he was “happy to do what we can to get liquidity for Voyager clients” and posted a Press release on PR Newswire detailing how FTX would help the insolvent crypto company. Following the statement from Bankman-Fried and FTX, reports it emerged that FTX would buy Voyager and its assets for $1.4 billion.
However, on October 14, 2022, the Texas State Securities Board (SSB), the Texas Department of Banking, and the Texas Attorney General opposed the potential purchase of FTX. The Texas securities commissioner stated that an investigation into FTX was needed before the deal could be completed. FTX was under investigation for not being registered as a money transmitter or in any other capacity with the Texas Department of Banking, and also not registered as a securities dealer with the state. Kirkland & Ellis expects to obtain all documents and communications that the named persons may have regarding the proposed FTX/Voyager settlement.
The lawyers want all documents associated with the Justice Department fraud case and the Securities and Exchange Commission (SEC) case. The filing mentions documents related to the “Ellison Admissions” and the “Wang Admissions.” Voyager’s lawyers are seeking documentation related to FTX’s new CEO, John J. Ray III, and statements from him. The lawyers also state that they will need “text messages, Slack messages, Telegram messages and Signal” between any of the aforementioned parties. The filing also references the Bankman-Fried tweetstorm of July 24, 2022 and seeks any communication with Changpeng Zhao (CZ), the founder of Binance.
Kirkland & Ellis is looking for all “FTX-related entity business records related in any way to the VGX token” between April 2022 and November 11, 2022. Essentially, the law firm’s list is comprehensive, mentioning almost all of the documents that could be linked. to the deal proposed by FTX and Bankman-Fried to help and then buy Voyager Digital. The subpoenas follow Alameda Research’s attempt to claim $446 million for alleged “preferential transfers” to Voyager.
What do you think will be the outcome of this subpoena for FTX and Voyager Digital? Leave your thoughts in the comments section below.
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