Regulation Agency Subpoenas FTX Co-Founder, High Executives, and Former Alameda CEO Over Voyager Digital Deal

On Feb. 6, 2023, regulation agency Kirkland & Ellis issued a subpoena to FTX co-founder Sam Bankman-Fried and prime executives on behalf of Voyager Digital. The subpoena requested they produce paperwork and communications associated to the “Alameda Mortgage Settlement” between Alameda Ventures and Voyager, in addition to different necessary paperwork. Moreover, Voyager Digital has subpoenaed former Alameda Analysis CEO Caroline Ellison, FTX co-founder Gary Wang, and former FTX head of product and investor relations Ramnik Arora.

Regulation Agency Kirkland & Ellis Requests Documentation for Proposed FTX-Voyager Deal

Kirkland & Ellis, the regulation agency representing the now-bankrupt crypto lender Voyager Digital, has despatched a subpoena to former FTX and Alameda workers together with Sam Bankman-Fried, Caroline Ellison, Gary Wang, and Ramnik Arora. The attorneys are requesting that the events produce all documentation and communications related to the Voyager deal between Alameda Ventures and West Realm Shire Inc., often known as FTX.

Previous to FTX’s collapse, FTX and Bankman-Fried insisted that the crypto trade would assist Voyager’s prospects get hold of liquidity in July 2022. Bankman-Fried tweeted that he was “joyful to do what we will to get liquidity to Voyager’s prospects” and revealed a press release on PR Newswire detailing how FTX would assist the bancrupt crypto agency. After the assertion from Bankman-Fried and FTX, reports emerged that FTX would buy Voyager and its property for $1.4 billion.

Nonetheless, on October 14, 2022, the Texas State Securities Board (SSB), the Texas Division of Banking, and the Texas lawyer basic objected to FTX’s potential buy. The Texas securities commissioner acknowledged that an investigation into FTX was wanted earlier than the deal could possibly be accomplished. FTX was underneath investigation for not being registered as a cash transmitter or in every other capability with the Texas Division of Banking, and in addition not registered as a securities supplier within the state. Kirkland & Ellis is hoping to acquire all of the paperwork and communications that the subpoenaed people might have relating to the proposed FTX/Voyager deal.

The attorneys need all paperwork related to the Department of Justice fraud case and the Securities and Alternate Fee (SEC) case as effectively. The submitting mentions paperwork associated to the “Ellison Admissions” and the “Wang Admissions.” Attorneys for Voyager are looking for documentation related to FTX’s new CEO, John J. Ray III, and his statements. The attorneys additionally state that they may want “textual content messages, Slack messages, Telegram and Sign messages” between any of the aforementioned events. The submitting additionally references Bankman-Fried’s tweetstorm from July 24, 2022, and is looking for any communications with Changpeng Zhao (CZ), the founding father of Binance.

Kirkland & Ellis is pursuing any obtainable “FTX-related entities’ buying and selling logs associated in any method to the VGX token” between April 2022 and November 11, 2022. Primarily, the regulation agency’s checklist is complete and mentions practically each doc that could possibly be tied to FTX’s and Bankman-Fried’s proposed deal to assist after which purchase Voyager Digital. The subpoenas observe Alameda Analysis’s attempt to reclaim $446 million over alleged “preferential transfers” to Voyager.

What do you suppose the result of this subpoena shall be for FTX and Voyager Digital? Go away your ideas within the feedback part under.