Voyager Token (VGX), the native token for now bankrupt crypto lending firm Voyager, rose by nearly 60% within the past 12 hours.
The price increase followed supposedly negative news in which FTX lawyers filed a lawsuit against Voyager seeking to recall $445 million worth of assets.
As the chart above shows, VGX initially jumped from $0.41 to $0.75 but traded around $0.54 at the time of writing. The price action may result from bot trading activity instead of investors being optimistic about Voyager’s future prospects in the wake of the latest filings.
FTX Lawyers File Suit Against Voyager
Lawyers representing bankrupt crypto exchange FTX filed a lawsuit against Voyager on behalf of FTX’s sister firm Alameda Research.
According to the court documents, FTX is seeking a refund of the $445 million that Alameda Research repaid to Voyager to cover a loan deal after the crypto lender filed for bankruptcy in July. Alameda reportedly transferred $248.8 and $193.9 million to Voyager in October and September, respectively. The crypto venture capital fund also paid Voyager an additional $3.2 million in interest.
FTX lawyers claim they have the legal jurisdiction to recall the repayment since it was made in September and October or within a few months before FTX filed its Chapter 11 bankruptcy. The funds, if retrieved, would go towards repaying FTX creditors, according to the filings.
Meanwhile, FTX lawyers also alleged that Voyager was an accomplice to FTX’s failure. The filings label Voyager a “feeder fund” that solicits retail investments that it funneled into hedge funds like Alameda Research and Three Arrows Capital without due diligence.
The current case raised against Voyager will go up to the U.S. bankruptcy court in the district of Delaware. It also comes at a time when current FTX CEO John Ray III has floated the idea of the exchange resuming operations in the coming months.
