A creditor and finance lawyer, Michelle DiVita, has requested a Chapter 11 trustee be appointed in the bankruptcy trial of crypto brokerage Voyager Digital.
The motion cites a history of financial statement inaccuracies and public misrepresentations that were known or reasonably discoverable at the start of the bankruptcy proceedings.
The filing alleges that Voyager underreported a loan to crypto hedge fund Three Arrows Capital by $609 million and undervalued Bitcoin in its financial reports by 546% to downplay the size of its loans.
The bankruptcy proceedings already involve a U.S. trustee who is required to bring a motion to appoint a Chapter 11 trustee when there are “reasonable grounds to suspect” the debtor’s involvement in actual fraud, dishonesty, or criminal conduct.
The U.S. trustee may hire a bankruptcy trustee to manage the debtor’s affairs if the debtors are not allowed to do so themselves.
In other news, Voyager and its creditors have pushed back against an attempt by bankrupt trading firm Alameda Research to recover $446 million in loan repayments.
