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Voyager issues SBF subpoena to testify in bankruptcy proceedings

Posted:Feb 20, 2023 16:04 Category: Americas , Payments , Regulatory , Posted by Maria

The creditor committee for bankrupt cryptocurrency lender Voyager Digital has requested Sam Bankman-Fried (SBF) to conduct a deposition remotely this week.

The unsecured creditors of Voyager claimed in a court document dated Feb. 18 that they had served the former FTX CEO with a subpoena demanding that he turn over papers no later than February 20.

A remote deposition was also scheduled for February 23 at 10:00 ET, and Bankman-Fried was asked to attend.

Voyager’s attorneys requested that SBF and prominent FTX and Alameda Research executives, including Caroline Ellison and Gary Wang, for a variety of papers earlier this month.

To add context, Alameda is in the process of attempting to claw back $446 million it paid Voyager on grounds that it loaned out the funds within 90 days of filing for bankruptcy. Voyager has vehemently opposed the attempt, stating its creditors had been significantly affected due to Alameda’s and FTX’s misconduct.

Litigation proceedings are extensive, and somewhat overlapping. In fact, US District Judge Kevin Castel moved two civil lawsuits against SBF to be put on hold until federal prosecutors at the US Department of Justice (DOJ) create their own case against him. The lawsuits were, filed by the US Securities and Exchange Commission, as well as the Commodity Futures Trading Commission.

US District Judge Lewis Kaplan also ordered the disgraced FTX founder to make a physical appearance in court last week. Heargued that bail conditions should be revised to restrict internet access, encrypted messaging services and VPNs.

The judge indicated an intention to jail Bankman-Fried if he did not cooperate with bail conditions, but has yet to revise the terms.

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