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Voyager creditor and financial lawyer Michelle DiVita has filed a motion to have a trustee appointed to handle the crypto lender’s estate.
The collapse of the Terra ecosystem was one of the most significant events that pushed the industry into a bear market. It was a catalyst for overleveraged firms, which led to Voyager Digital filing for Chapter 11 bankruptcy in July 2022.
Voyager’s bankruptcy impacted many investors whose funds are stuck with the firm. One of the creditors, Michelle DiVita, filed a motion to appoint a Chapter 11 trustee on Thursday.
Voyager Faces Accusation of Fraud
DiVita, who has “Voyager victim” in her Twitter bio, took matters into her own hands and requested the U.S. Bankruptcy Court for the Southern District of New York to appoint external trustees for Voyager.
During Chapter 11 filings, the company acts as a trustee and controls the estate. But the court transfers the control of the estate to an external Chapter 11 Trustee under certain criteria.
DiVita requested an external trustee under the criteria of “reasonable grounds to suspect that current members of the governing body of the debtor participated in actual fraud, dishonesty, or criminal conduct in the management of the debtor.” She alleges that Voyager had a “history of financial statement inaccuracies and public misrepresentations.”
BeInCrypto has reached out to Michelle DiVita for comment but has yet to hear back.
Former Voyager CIO Supports Claims
Shingo Lavine, the former Chief Innovation Officer (CIO) of Voyager, has supported DiVita by stating that her filing is a “very good step in the right direction.” He even wrote a Twitter thread breaking down the 120-page filing.
He explains that Voyager modified its customer agreement to make customers liable for the risks from its lending activities. The company didn’t notify its existing customers of the change in the contract.
In 2022, Coinbase placed bids on Voyager’s assets but later backed out. Coinbase Chief Executive Officer, Brian Armstrong, cited regulatory concerns as a reason for the U-turn. The filing alleges that Coinbase caught wind of Voyager’s finances and chose to withdraw its bid.