• A Voyager creditor requested a Chapter 11 trustee to partake in the bankruptcy trial of Voyager Digital.
• Voyager allegedly underreported loan amounts and undervalued Bitcoin in its financial reports.
• Coinbase backed out of a potential acquisition after discovering the financials did not add up.
Request for Chapter 11 Trustee
A Voyager creditor has requested a chapter 11 trustee to partake in the bankruptcy trial of Voyager Digital. Previously, Voyager and its creditors resisted Alameda Research’s attempts to recoup $446 million in loan repayments. A Voyager creditor and finance lawyer has requested the involvement of a chapter 11 trustee in the bankruptcy trial of crypto brokerage Voyager Digital. This could result in Voyager losing control of its estate. In a motion issued on 1 February, Voyager creditor Michelle DiVita accused Voyager of a history of financial statement inaccuracies and public misrepresentations that were known, or reasonably discoverable, at the start of the bankruptcy. DiVita believed that an examiner or trustee should have been requested because of this pre-bankruptcy behavior. Inasmuch, she was requesting one herself.
Voyager has been accused of concealing the true nature of its lending activities by publishing financial reports that materially understated its loan positions by over $1 billion USD. Shigo Lavine, a former Voyager director, highlighted some of the key allegations in the filing on Twitter on 1 February. Voyager allegedly underreported a $609 million loan to crypto hedge fund Three Arrows Capital. Moreover, it undervalued Bitcoin [BTC] in its financial reports by 546% to downplay the size of its loans.
Coinbase also became aware of Voyager’s financial reporting inconsistencies and reportedly backed out from acquiring their assets after realizing that their finances do not add up correctly as expected for such deal to happen properly and successfully with them having required resources for it too as well as being able to fulfill their end goal from it too as well which is what any company would look for when entering into deals like these ones between themselves and another companies .
U.S Trustee Evaluates Applications
The U.S Trustee appoints a creditors committee and evaluates applications for professional re-compensation with respect to all related matters including those associated with such deals like these ones between companies too so they can be sure that there are no discrepancies between them as far as what they expect from each other when going into such deals.. Additionally, they may also recruit a bankruptcy trustee to oversee the debtor’s affairs if the debtors do not do so themselves too so there is always someone overseeing their operations even if they don’t want someone doing it themselves either way which includes all related matters associated with these kinds off dealings between two entities alike who enter into an agreement together like these ones here involving both companies involved equally altogether still yet regardless even though one maybe backing out now due to unforeseeable circumstances occurring during negotiations before hand previously already thus leading up till now currently this point still today yet despite this happening unfortunately unfortunately still yet either way nevertheless still either way regardless .
In conclusion ,a chapter 11 trustee may be appointed by court order if necessary , but regardless , Coinbase is no longer pursuing an acquisition due to discrepancies found within Voyagers finances . The U . S Trustee will evaluate applications for professional compensation ,and potentially recruit trustees if need be .