Voyager borrows $485 million from Bankman-Fried
Voyager Digital, the crypto broker, reportedly got loans from Alameda Research, a trading company formed by FTX founder Sam Bankman-Fried, according to a Bloomberg report.
This will go towards greater protection of client assets while there is volatility in the digital asset market.
Voyager has signed a non-binding term sheet for a $200 million credit facility from Alameda, which will come from a mix of cash and the USDC stablecoin.
The sheet will also come with a revolving line of credit for 15,000 bitcoins, which were worth around $285 million on Saturday. This will be used as a way to protect client assets due to the current volatile crypto market conditions, Voyager said.
The crypto sector has been through one of its worst weeks on record, with token prices plummeting and companies struggling to stay above water.
In other Bankman-Fried related news, he recently said the Federal Reserve was responsible for the crypto crashes, NPR wrote.
He said the Fed was the “main driver” of the recession as the Fed raised interest rates aggressively to help fight ongoing inflation.
This has led to a “recalibration” of risk anticipation with crypto.
Bankman-Fried said he knows how difficult what the Fed is trying to do is. He said the Fed was “caught between a rock and a hard place,” but added that his company’s prospects now depended on what the Fed did in the coming months.
Read more: FTX founder says Bitcoin is failing as a payment network
Bankman-Fried has been vocal about crypto issues, including recently saying that bitcoin’s inefficiency, environmental impact, and lack of ability to scale make it a weak candidate for a payment network, PYMNTS wrote.
He said it was not a payment network nor a scaling network, indicating that the proof-of-work system was not sufficient to validate the “millions” of transactions that would be needed to make bitcoin a good payment system.