Creditor Moves to Appoint Trustee to Investigate Voyager Digital’s $1B Loan Scandal
• Michelle DiVita, a voyager creditor, filed a motion to appoint a Chapter 11 trustee to seize the bankrupt firm’s estate.
• The motion accuses Voyager Digital of hiding book information from creditors, including understated loans totaling $1 billion.
• DiVita expressed her concerns on Twitter that Voyager misinformed the public through inaccurate data.
Financial lawyer Michelle DiVita recently filed a motion on Feb. 1 to appoint a Chapter 11 trustee to seize the estate of Voyager Digital, a bankrupt firm. DiVita, a voyager creditor, believes that the trustee should have been appointed according to bankruptcy conduct, accusing Voyager of misinforming the public about the company’s financial situation and of hiding book information from creditors.
The motion states that Voyager Digital has understated loans totaling $1 billion and that its bankruptcy situation does not reflect its previous published books. DiVita took to Twitter to voice her concerns, revealing that Voyager disclosed financial reports on Mar. 31 showing $2.2 billion while the actual loans as of Apr. 3 stood at $3.1 billion. This leaves a gaping hole of about $1 billion allegedly submerged in the books.
DiVita is now following legal procedures to push for the appointment of a trustee which would take control of the firm’s estate on February 2, 2023 at 1:00 pm. She hopes that the trustee will be able to investigate the matter and bring greater transparency and accountability to the situation.
Regardless of the outcome, the situation highlights the importance of investment transparency, and DiVita’s efforts are a reminder of the importance of doing due diligence before investing. While the details of the case remain to be seen, it is a stark reminder of the importance of making sure that the financial information provided by a company is accurate and reliable.