Voyager creditor files Motion for Chapter 11 trustee

A Voyager creditor — Michelle D. DiVita — filed a question to name a Chapter 11 trustee successful the Voyager Digital Holdings, Inc., et al. bankruptcy case, according to court filings.

In DiVita’s preliminary statement, she stated the debtors person a “history of fiscal connection inaccuracies and nationalist misrepresentations.”

“Despite its pre-petition conduct, nary enactment requested an assignment of an autarkic examiner. As such, Debtors self-appointed a committee for its investigation.”

Creditors are “stuck with dollarized claims bearing the brunt of the marketplace downsides and capped connected the upside,” DiVita stated.

“Interested of unsecured creditors person been […] eroded nether Debtors continued absorption and a trustee is the astir cost-efficient mode to bring this lawsuit to an equitable end.

FTX, Alameda failed transaction

The debtors’ caller program projected “the aforesaid broad-releasing releases” — contempt the erstwhile program which pb to creditors losing $100 cardinal owed to the failed FTX/Alameda transaction, according to DiVita’s preliminary statement.

“The failed program gave a authorities bureau capable clip to find the ground for 3 (3) claims for securities fraud totaling $40 cardinal each.”

Despite the $40 cardinal successful securities fraud claims, “the Official Committee of Unsecured Creditors Committee continues to enactment the plan,” DiVita stated.

The 3AC loan

The Master Loan Agreement dated March 4, 2022 betwixt Voyager Digital, LLC and Three Arrows Capital Ltd. (3AC) is cardinal to the Voyager bankruptcy, according to the filing.

“With the 3AC Loan successful the spotlight, investigative findings besides centered connected the 3AC Loan. The Debtor-appointed Special Committee solely recovered insider culpability arising from the 3AC Loan.”

Prior to discussions with 3AC, connected Jan. 7, 2022, debtors modified the Customer Agreement “to displacement the hazard of its lending enactment straight customers,” according to the filing.

“The alteration removed immoderate independency oregon controls betwixt the Debtors’ lending enactment (and resulting borrower risk) from customer’s cryptocurrency deposits.”

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