For the struggling crypto lender Voyager Digital, a former Voyager executive and board member is seeking a different restructuring plan altogether.
Shingo Lavine, a former chief innovation officer at Voyager, and Adam Lavine, his father, and business partner, are opposing Voyager Digital’s restructuring proposal.
They proposed a strategy in which Voyager would stop all lending operations, incorporate live trading, issue a recovery token in addition to VGX Tokens, offer unsecured creditors significant additional benefits, etc.
Emerald Ocean Ventures, the cryptocurrency firm Lavine founded in January 2020, is the source of the proposal. The company on behalf of Lavine filed the objection with the United States Bankruptcy Court, Southern District of New York.
Voyager is currently looking for bids for the beleaguered firm and has already filed a restructuring plan. Emerald has not yet been accepted by Voyager as an “acceptable bidder.”
Voyager’s plan is being opposed by Emerald and the Lavines, who want alternative restructuring plans like theirs to be taken into account first.
Emerald Ocean Ventures wants to give some input on how Voyager Digital handles the restructuring so that the company has more control over how much and in what denomination Voyager will reimburse them.
In 2019, Voyager Digital bought the Bedrock enterprise blockchain and the Ethos Universal Wallet from Lavine’s co-founded Ethos.io. The deal was finalized for 7,250,000 VYGR shares.
By the beginning of 2021, Lavine was unhappy with the Voyager’s course and some of the choices being made. He left the business in February 2021 after resigning from the board as a result of these differences.
“We, the co-founders of Ethos.io, have been working to come up with a restructuring plan to provide a greater recovery for creditors caught up in the Voyager bankruptcy,” Emerald Ocean Ventures noted in a statement.
Voyager Digital filed for Chapter 11 bankruptcy just three weeks back. According to Lavine, Voyager Digital’s reckless lending and risk-taking were the cause of the bankruptcy.
Yesterday, in a joint letter, FDIC and Fed demanded Voyager to stop making insurance claims. The letter also demanded Voyager to provide a full listing of all statements regarding any reference to FDIC insurance within 10 days.
