[Article] SBF and CZ openly argue: providing Voyager credit lines and using its lending services are two different things

22-07-08 16:43

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Cryptocurrency broker Voyager Digital has officially filed for bankruptcy a few days ago, and according to bankruptcy filing< /a>, Alameda has borrowed from Voyager Digital, the amount is second only to 3AC, which also drew criticism from Binance founder Zhao Changpeng. But then SBF accepted "WSJ" to clarify the matter, and countered: If you don't understand the bankruptcy law, you can ask me.

The Lehman moment of the encryption market continues to make the community continue to bleed. Cryptocurrency broker Voyager Digital recently filed for bankruptcy. According to bankruptcy documents, Alameda borrowed $376 million from Voyager, second only to the amount owed by Three Arrows Capital (3AC). This incident attracted the attention of the community, because Alamema provided Voyager with a loan line before bankruptcy to relieve the liquidity crisis.

The founder of Binance directly commented that he could not keep up with the speed of the car and it was hard to follow. Simply put, CZ questioned why FTX/Alameda had money to lend to 3AC, but didn't reach out to pay them back when Voyager went bankrupt.

CZ tweeted at Special write:

“So, 3AC owed Voyager hundreds of millions of dollars, and finally went bankrupt. FTX/Alameda gave 3AC $100 million, but 3AC finally went bankrupt. Alameda has invested ;Voyager, but at the same time lent money to Voyager...well...in the end Voyager went bankrupt, didn't FTX lend money to Voyager or pay back the money in the process? It's hard to follow.

In this regard, SBF stated that lending money to Alameda is just Voyager's daily business, which is related to Alemeda's emergency credit provided to Voyager when the liquidity crisis appeared is two different things, and hit back on Twitter: If you don't understand bankruptcy law, you can ask me.

According to the document, in addition to Alameda, Voyager also provided loans to other companies, including Genesis, Galaxy Digital, Jump Trading and other encryption giants.

What SBF Says

SBF is accepting the Washington Journal Interview stated that Voyager's daily business is to provide high-interest loans to others, and after the loan expires, return the money plus interest to users, and Earn the spread in the middle. And these loans for day-to-day business are not the same thing as Alameda's emergency line of credit in the event of bankruptcy.

In fact, every loan has a due date, and Alameda may have other arrangements before the loan from Voyager is due.

For example, the 376 million assets may be used by Alameda in different places, such as buying some short-term corporate bonds or lending to others, So for Alameda, they will not be able to recover the money until the corporate bond or loan matures.

So later Alameda provided an emergency line of credit when it went bankrupt, including 200 million US dollars in cash and 15,000 bitcoins, which were additional funds, and the source of funds was not a loan from Voyager.

It is worth mentioning that although the amount of funds lent by Alameda is close to 500 million US dollars on the book, on the 30th Only $75 million was available. It also means that Alameda expects to receive another payment after the 30th to cover the $75 million it borrowed.

SBF said in the interview:

“Voyager’s daily business is to provide high-interest loans to others, which is different from Alameda’s emergency line of credit when it goes bankrupt. Alameda will eventually pay back , and the money may be used to reimburse Voyager users."

The organization's balance sheet arrangement is very complicated and interlocking. Company A The money to be returned to company B this week may require company C to repay the loan on schedule before company A can pay to company B. Once there is a problem with liquidity in the near future, it may go bankrupt.

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The reason why Voyager filed for bankruptcy is not because there is really no money.

According to the document, their "assets" are between 1 billion and 10 billion US dollars, and their liabilities are also 1 billion to 10 billion US dollars. It’s just that not all of these assets are liquid. They may be bonds or loans. These things need to mature before they can become liquid dollars.

There is no sufficient liquidity in the short term, and the inability to pay due debts may be the key to filing for bankruptcy.

SBF counterattack: If you don’t understand, you can ask us

SBF admitted in the interview that Voyager filing for bankruptcy is unfortunate news for Alameda, meaning The incident would have cost Alameda a loss, but then added that it is a common occurrence in investing.

In response to Zhao Changpeng's question "Why FTX didn't save Voyager", SBF said:

“If you decide to save a company that is about to declare bankruptcy, you may not have considered your own company.”

Finally, SBF responded on Twitter:

"It's nice to have someone willing to help the industry, although deducting those who pretend to help, there are very few such people. But I would rather hope that some of these One can ask legal first to understand how bankruptcy works... Or, one can ask us directly for clarification. I'm always happy to clarify!"

always happy for people to take an interest in helping the industry (less so if it's just pretending) but kinda wish some of them would bother asking their legal team how bankruptcy works first... Or, you know, reach out to ask for clarifications. I'm always happy to inform!