Voyager victim files motion to appoint outside trustee

Voyager creditor and financial attorney Michelle Divita has filed a motion to appoint a trustee to handle the crypto lender’s assets.

The collapse of Terra Ecosystem was one of the most significant events that pushed the industry into a bear market. This was a catalyst for the highly profitable firms, which led to Voyager Digital filing for Chapter 11 bankruptcy in July 2022.

Voyager’s bankruptcy affected many investors whose funds were stuck with the firm. One of the creditors, Michele DeVita, filed a motion on Thursday to appoint a Chapter 11 trustee.

Voyager accused of fraud

DiVita, whose Twitter bio reads “Voyager victim”, took matters into his own hands and requested the US Bankruptcy Court for the Southern District of New York to appoint an outside trustee for Voyager.

During a Chapter 11 filing, the company acts as the trustee and controls the assets. But the court transfers control of the assets to an outside Chapter 11 trustee under certain criteria.

DiVita requested an outside trustee under the criteria of having “reasonable grounds to suspect that current members of the debtor’s governing body have participated in actual fraud, dishonesty, or criminal conduct in the management of the debtor.” It alleged that Voyager had a “history of financial statement inaccuracies and public misrepresentations”.

BeInCrypto has reached out to Michele DeVita for comment, but has not yet received a response.

Former Voyager CIO backs up claims

Shingo Lavine, former Chief Innovation Officer (CIO) of Voyager, endorses DiVita by by stating His filing is “a very good step in the right direction.” he also wrote a twitter Thread Breaking down the 120-page filing.

he telling That Voyager amended its Customer Agreement to hold the Customers liable for the risks arising out of its lending activities. The company did not inform its existing customers about the contract change.

In 2022, Coinbase bid on Voyager’s assets, but later backed out. Brian Armstrong, the CEO of Coinbase, cited regulatory concerns as the reason for the U-turn. The filing alleges that Coinbase caught wind of Voyager’s finances and opted to withdraw its bid.