Law Firm Subpoenas FTX Co-Founder, Top Executives, and Former Alameda CEO Over Voyager Digital Deal

On Feb. 6, 2023, law firm Kirkland & Ellis issued a subpoena to FTX co-founder Sam Bankman-Fried and top executives on behalf of Voyager Digital. The subpoena requested they produce documents and communications related to the “Alameda Loan Agreement” between Alameda Ventures and Voyager, as well as other important documents. Additionally, Voyager Digital has subpoenaed former Alameda Research CEO Caroline Ellison, FTX co-founder Gary Wang, and former FTX head of product and investor relations Ramnik Arora.

Kirkland & Ellis, the law firm representing the now-bankrupt crypto lender Voyager Digital, has sent a subpoena to former FTX and Alameda staff including Sam Bankman-Fried, Caroline Ellison, Gary Wang, and Ramnik Arora. The lawyers are requesting that the parties produce all documentation and communications associated with the Voyager deal between Alameda Ventures and West Realm Shire Inc., also known as FTX.

Prior to FTX’s collapse, FTX and Bankman-Fried insisted that the crypto exchange would help Voyager’s customers obtain liquidity in July 2022. Bankman-Fried tweeted that he was “happy to do what we can to get liquidity to Voyager’s customers” and published a press release on PR Newswire detailing how FTX would help the insolvent crypto firm. After the statement from Bankman-Fried and FTX, reports emerged that FTX would purchase Voyager and its assets for $1.4 billion.

However, on October 14, 2022, the Texas State Securities Board (SSB), the Texas Department of Banking, and the Texas attorney general objected to FTX’s potential purchase. The Texas securities commissioner stated that an investigation into FTX was needed before the deal could be completed. FTX was under investigation for not being registered as a money transmitter or in any other capacity with the Texas Department of Banking, and also not registered as a securities dealer in the state. Kirkland & Ellis is hoping to obtain all the documents and communications that the subpoenaed individuals may have regarding the proposed FTX/Voyager deal.

The lawyers want all documents associated with the Department of Justice fraud case and the Securities and Exchange Commission (SEC) case as well. The filing mentions documents related to the “Ellison Admissions” and the “Wang Admissions.” Attorneys for Voyager are seeking documentation associated with FTX’s new CEO, John J. Ray III, and his statements. The lawyers also state that they will need “text messages, Slack messages, Telegram and Signal messages” between any of the aforementioned parties. The filing also references Bankman-Fried’s tweetstorm from July 24, 2022, and is seeking any communications with Changpeng Zhao (CZ), the founder of Binance.

Kirkland & Ellis is pursuing any available “FTX-related entities’ trading logs related in any way to the VGX token” between April 2022 and November 11, 2022. Essentially, the law firm’s list is comprehensive and mentions nearly every document that could be tied to FTX’s and Bankman-Fried’s proposed deal to help and then buy Voyager Digital. The subpoenas follow Alameda Research’s attempt to reclaim $446 million over alleged “preferential transfers” to Voyager.

What do you think the outcome of this subpoena will be for FTX and Voyager Digital? Leave your thoughts in the comments section below.