Former Voyager Employees Come Forth With A New Restructuring Plan
- A former executive at Voyager Digital and his father have prepared their own restructuring plan when it comes to the firm’s bankruptcy.
- The former Chief Innovation Officer, Shingo Lavine, and his father want the bankruptcy filing to take into consideration their plan.
Voyager Digital halted withdrawals and deposit on July 1 due to turbulent market conditions but soon, it turned out that the firm has facing liquidity issues and filed for protection under Chapter 11 bankruptcy earlier this month. The firm has since then been discussing the future steps and restructuring plans.
A former executive at the crypto service provider, Shingo Lavine and his father and business partner Adam Lavine, have drafted a plan which they believe is a solution to the troubles of the crypto firm and now they attempt to save the platform from its own demise.
Shingo Lavine was the former Chief Innovation Officer at Voyager and as per TheBlock, the father son duo are not happy with the restructuring steps that the firm currently plans to follow. Hence, they offered a plan to remove all activities related to crypto lending on the platform and only facilitate crypto trading services.
On Thurday, the Lavines objected to Voyager’s motion for an order to approve the process the firm has planned to follow via its restructuring plan. Interestingly, both of them are also shareholders of the firm and built Ethos, “which hosted a wallet application in addition to blockchain architecture that allowed developers to build a variety of applications.”
Ethos was later acquired by Voyager in 2018 making Shingo as the CIO of the firm. However, the two parted ways in 2021 due to disagreements.
Interestingly, now the Levines want their firm, Emerald, to become an integrate partner of the crypto service provider and as a result, get involved with the restructuring plan as well. The duo want themselves to be installed as the new leaders of the management team and lead Voyager into a new era.
“Specifically, Emerald has been exploring submitting an alternative restructuring plan that, while similar to the debtors’ plan in structure, would immediately re-build trust by changing management, re-implementing a robust self-custody solution, and focusing the business around trading: Eliminating the lending and debit card platforms, paring back costs, and restructuring around a mission of building a best in class self-custody and integrated trading solution,”
report stated.
However, it is also important to note that Voyager hasn’t deemed Emeral as an “acceptable bidder” and it seems that there is to be an official statement regarding the same. The firm also declined the buyout offers from Alameda and FTX, both associated with crypto billionaire Sam Bankman-Fried (popularly known as SBF) who has recently provided cash to a number of crypto firms. “It’s a low-ball bid dressed up as a white knight rescue,” the company said.
A crypto journalist with over 3 years of experience in DeFi, NFT, metaverse, etc. Parth has worked with major media outlets in the crypto and finance world and has gained experience and expertise in crypto culture after surviving bear and bull markets over the years.
