Shingo Lavin, founder of the Ethos startup and part-time director of innovation at Voyager Digital, has objected to the restructuring plan proposed by the crypto broker.

The petition was filed with the Bankruptcy Court for the Southern District of New York (USA). The applicant is Emerald Ocean Ventures, an investment firm run by Lavigne with her father Adam.

While we don’t know why debtors have not been more accommodating, we are concerned that management wants to retain control.

In this case, it would be bad for the creditors. Potential plans for improvement should be examined and considered.

— shingolavine.eth (@shingolavine) 29 July 2022

“We, the co-founders of Ethos, have implemented a restructuring plan that will provide further recovery to creditors as part of the Voyager bankruptcy proceedings. We believe we did not gain adequate access and fair opportunity. We filed suit today,” Lavigne wrote.

Ethos is behind the development of the Bedrock blockchain platform. In 2019, Voyager bought the startup for $4 million. Following the deal, Lavigne took over the crypto broker’s CIO chairmanship and joined its board of directors. She left the company in February 2021 due to “internal differences”.

Lavigne was critical of Voyager’s approach to managing user funds. According to him, centralized risk taking initially endangered the broker’s clients.

“I don’t think Voyager failed because of market conditions or the global economy. I believe it failed due to reckless lending and risk taking. […] The market crash was the match that ignited that fire,” he wrote.

The reconstruction plan presented by Lavin and his father consists of eight points:

• changing the management of the broker and refocusing the company on its “core crypto-technical assets”;
• introducing a new culture based on innovation, transparency and profitability;
• implement technical solutions based on Ethos SmartKey to ensure the security of client funds (used in the custodial wallet Universal Wallet;
• stop lending-related transactions;
• “restart” the trading platform;
• integrate the ability to trade from non-custodial wallets in real time;
• implement “fragmented key storage” so customers can restore access to assets and launch a range of subscription services for businesses;
• Initiate a recovery token for payments to creditors.

Lavigne stressed that in order to fix the plan, Voyager needed access to information about the state of their business. According to him, the leadership of the crypto broker is preventing this.

“We tried to access the data and become a ‘verified member’ but so far without success. We believe this is not very conducive to a fair process – especially when we have a well-meaning assumption,” he said.

Recall that the exchange FTX offered Voyager clients to open an account for the bankruptcy of a crypto broker, from which they will receive revenue from their claims. With the approval and approval of the court, they will be able to access the assets earlier than the standard liquidation procedure.

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