A Delaware-based bankruptcy court has ordered Deltec International Group (DIG) to repay almost $53 million to Alameda Research, the crypto hedge fund linked to bankrupt cryptocurrency exchange, FTX.

Alameda Gave $50M Loan in 2021

The loan repayment is based on funds owed by Alameda Research by DIG under a promissory note agreement. According to an earlier court document, a total of USD$50 million was paid to DIG by Alameda on November 4, 2021, through the FTX trading exchange. The amount was paid in the form of USDT at a 1:1 ratio to US dollars.

Furthermore, the court document reveals that the loan was approved by Ryan Salame, FTX Digital Markets’ Co-CEO. Additionally, the deal is said to have involved Norton Hall, a company incorporated in Antigua and Barbuda.

“DIG shall and is hereby authorized and directed to pay to Alameda an amount equal to USD 52,859,644 as of April 12, 2023 (together with interest accruing at the rate of USD 10,538 per calendar day from such date to the date of repayment by DIG, the 'Owed Amount') within 7 days of entry of this Order, which Owed Amount constitutes all principal, interest and other amounts owed by DIG under the DIG Promissory Note,” reads an order signed by John Dorsey, the Bankruptcy Judge on the case.

FTX Pushes on with Asset Recovery

FTX collapsed in November last year following a liquidation crisis spurred by the discovery of the commingling of funds between the cryptocurrency exchange and its affiliated trading firm, Alameda Research. Subsequently, the troubled exchange filed for voluntary proceedings under Chapter 11 of the United States Bankruptcy Code in the District of Delaware.

In the latest news on the case, John Ray III, the new FTX CEO who took over the restructuring process of the bankruptcy digital asset company in 2022, noted in a Sunday filing that Alameda Research was not clear on its positions, not to talk of hedging or accounting for them, according to a CoinDesk report.

The update on the Alameda Research loan comes amidst asset recovery efforts by the bankrupt company. Late last month, cryptocurrency exchange OKX announced that it was preparing to transfer $157 million in frozen assets and accounts linked to FTX and Alameda Research. Recently, the FTX-linked trading firm filed a lawsuit against Grayscale in a bid to recover $250 million for its customers and creditors.

On top of this, FTX recently agreed to sell its preferred shares in Mystern Labs at a loss for the sum of $95 million. This came as bankruptcy lawyers ramp up efforts to shore up funds to compensate the customers of the failed crypto exchange.

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