April 1, 2023

Changpeng Zhao criticizes Alameda Research's deal with Voyager Digital

Changpeng Zhao criticizes Alameda Research's deal with Voyager Digital

The head of the Binance bitcoin exchange, Changpeng Zhao, criticized the deal of the venture capital company Alameda Research, in which it provided cryptocurrency broker Voyager Digital with a $500 million loan. On the Decrypt podcast, he stated that he “would never go for such an agreement.”

On June 18, Voyager Digital reported that Sam Bankman-Fried's company had loaned him 200 million USDC and opened a 15,000 BTC (~$321 million at the time of writing) revolving line of credit.

When the crypto broker filed for bankruptcy,it turned out that Alameda Research is the second borrower in terms of funds raised ($376.8 million) from Voyager Digital after Three Arrows Capital (3AC). The company can rely on these assets to pay off liabilities to creditors.

“To me personally, and to a large extent Binance,I like very simple transactions. […] We don't like agreements like, "Hey, I owe you money, you pay me back this much, you invest in me, I lend you more, and then you save me." Why don’t we just return all the money, go back to the starting point and talk about the net balance, who owes whom how much?” Zhao said.

Earlier, the head of Binance said that the deal with Alameda is unlikely to save Voyager Digital.

So 3AC owes Voyager several hundredmillion and went bankrupt. FTX/Alameda give 3AC $100M but don't save him. Alameda invests in Voyager, then takes out a $377 million loan from a broker...okay...Voyager went bankrupt. FTX didn't bail them out and refund the money? Is it hard to follow?” he wrote.

In June, Bankman-Fried reported that Alameda Research was making efforts to mitigate negative phenomena in the cryptocurrency market due to the problems of Celsius and Three Arrows Capital.

In a recent interview with Reuters, the entrepreneurnoted that FTX has "several billions" to bail out companies that are in trouble. According to him, a number of firms turned to them for help. He stressed that the worst part of the crisis is behind us.

Zhao also stated that she has a "duty" to protect users and help the rest of the industry survive. However, in his opinion, there are "bad projects" that should not be saved.

Recall, according to the head of Binance, the exchange is in rescue talks with more than 50 companies.

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