June 25, 2024

Changpeng Zhao criticizes Alameda Research's deal with Voyager Digital

Changpeng Zhao criticizes Alameda Research's deal with Voyager Digital

The head of the Bitcoin exchange Binance, Changpeng Zhao, criticized the deal of the venture capital company Alameda Research, in which itprovided 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 a 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 its obligations to creditors.

“For 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 bail me out.” Why don't we just return all the money, go back to square one and talk about the net balance sheet, who owes who what?" Zhao said.

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

“So 3AC owes Voyager a few hundredmillion and went broke. FTX/Alameda gives 3AC $100 million, but doesn't save it. Alameda invests in Voyager, then takes out a $377 million loan from a broker... okay... Voyager goes bankrupt. FTX didn’t “rescue” them and didn’t return the money? Is it hard to follow?” he wrote.

In June, Bankman-Fried reported that Alameda Research was making efforts to mitigate the negative developments 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 save companies that are facing difficulties. According to him, a number of companies turned to them for help. He stressed that the worst part of the crisis is over. 

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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