1 year ago
The 120-page question came from a creditor who asked for the assignment of a Chapter 11 trustee, citing alleged fraud and incompetence astatine Voyager.
1442 Total views
2 Total shares
Own this portion of past
Collect this nonfiction arsenic an NFT
A Voyager creditor and concern lawyer wants to spot a section 11 trustee appointed successful crypto brokerage Voyager Digital’s bankruptcy trial, which would spot Voyager suffer power of its estate.
In a Feb. 1 motion, Voyager creditor Michelle DiVita accused Voyager of having a “history of fiscal connection inaccuracies and nationalist misrepresentations that were known, oregon reasonably discoverable, astatine the opening of the bankruptcy proceeding."
Due to this pre-bankruptcy conduct, DiVita believes that an examiner oregon trustee should person been requested, and is present doing truthful herself.
The filing alleges that Voyager “concealed the existent quality of its lending activities by publishing fiscal reports that materially understated its indebtedness positions by much than $1 cardinal USD.”
— Michelle DiVita (@ChelleDiVita) January 13, 2023A erstwhile manager and CIO for Voyager, Shigo Lavine, highlighted immoderate of the cardinal accusations made successful the filing successful a lengthy Feb. 1 twitter thread.
For example, Voyager allegedly underreported a indebtedness to crypto hedge money Three Arrows Capital by $609 cardinal and besides undervalued Bitcoin (BTC) successful its fiscal reports by 546% to downplay the size of its loans.
The Debtor provided assurances successful regards to its quality to rise superior and conscionable liquidity requirements.
This led galore (including myself) to incorrectly reason that Voyager would beryllium capable to past this contempt 3AC going nether pic.twitter.com/jjnloWDG7A
According to the filing, crypto speech Coinbase besides caught upwind of Voyager’s “financial reporting inconsistencies,” and had reportedly backed retired of a imaginable woody to get the assets of Voyager aft uncovering “the financials don’t adhd up.”
The bankruptcy proceedings already impact a United States Trustee, who is required to bring a question to name a section 11 trustee erstwhile determination are “reasonable grounds to suspect” that the debtor “participated successful existent fraud, dishonesty oregon transgression conduct.”
While the U.S. Trustee appoints a creditors committee and reviews applications for the recompensation of professionals amongst different duties, they whitethorn besides prosecute a bankruptcy trustee to negociate the debtor’s affairs if the debtors are not allowed to bash truthful themselves.
Cointelegraph has contacted Voyager for a effect to the allegations and the question but did not person an contiguous response.
Related: Voyager tells tribunal Binance acquisition program is ‘sound concern judgment,’ urgently needed
In different news, some Voyager and its creditors person pushed backmost astatine an effort by bankrupt trading steadfast Alameda Research to claw backmost $446 cardinal successful indebtedness repayments.
After commencing section 11 proceedings connected Jul. 5, Voyager had demanded the repayment of each its outstanding loans to Alameda, and was repaid successful full.
However, Alameda sought to retrieve the funds successful a Jan. 30 tribunal filing, arguing that due to the fact that they repaid the loans wrong 90 days of filing for section 11 bankruptcy themselves, they could “claw back” these funds for the payment of Alameda creditors.
Voyager says that its creditors person suffered “substantial harm” owed to Alameda making a bid for Voyager’s assets that it could not honor, costing them successful excess of $100 million. Voyager argues that this makes Alameda’s assertion subordinate to those of its different creditors.
English (US) 