Representatives for Voyager Digital’s unsecured creditors’ committee have requested that former FTX CEO Sam Bankman-Fried (SBF) and several top executives from FTX and Alameda Research appear in court remotely this week for a deposition.
The depositions are set to take place remotely on Feb. 23, with lawyers for Voyager’s creditors investigating FTX’s attempt to bail out the crypto lender Voyager Digital when it declared bankruptcy in July 2022.
Subpoenaed by Voyager are Nishad Singh, Gary Wang, Caroline Ellison, and Samuel Trabucco, a former Alameda co-CEO who has avoided the public eye since stepping down from his position in August 2022.
The executives were also subpoenaed by FTX’s bankruptcy administrators last week.
On Feb. 14, SBF, his father, Joseph Bankman, Gary Wang, Caroline Ellison, and Nishad Singh were served with a subpoena in the US Bankruptcy Court for the District of Delaware. The FTX trading debtors requested that all subpoenaed individuals or their representatives produce company-related documents.
The debtors requested documents of SBF’s decision to resign as CEO and appoint John Ray as his replacement, the impact of Terra USD and LUNA’s collapse on FTX, and any investment in or sale of FTX. The subpoena also requested documents concerning Binance’s failed attempt to acquire FTX.
FTX’s attempted bailout of Voyager Digital
On July 6, 2022, crypto exchange and custodian Voyager Digital announced that it had filed for bankruptcy protection in the U.S. Bankruptcy Court for the Southern District of New York.
According to court documents, Voyager Digital had a debt profile ranging from $1 to $10 billion. The company cited difficulties in its business due to substantial losses and the precipitous decline of the cryptocurrency markets.
Following this development, Voyager Digital creditors agreed to a $1.4 billion deal to sell its assets to FTX. However, the collapse of FTX in November broke the deal. In the end, Binance.US won the bid for Voyager’s assets, and in mid-January, a US judge in New York gave the deal the green light to proceed.
SBF has been hit with a slew of criminal charges in the aftermath of FTX’s collapse, which cost investors billions of dollars, and the company’s subsequent bankruptcy filing, which occurred in November 2022. However, the former CEO has maintained his not-guilty plea, whereas his other associates have pleaded guilty to fraud charges and are cooperating with prosecutors.
