Raznick posted on Twitter, just days before Voyager Digital filed bankruptcy. According to a court filing, Jason Raznick, CEO at media company Benzinga has been appointed to the unsecured creditors committee in the Voyager Digital bankruptcy case.
Chapter 11 bankruptcy proceedings usually include creditors’ committees made up of individuals and companies with the seven largest unpaid claims against the debtor. In this case, Voyager Digital, a New Jersey-based crypto brokerage, is the creditor.
It is a crucial role. The committee has the responsibility of preparing a plan for the business’ reorganization. Without this, the case can’t be closed.
A virtual court hearing will be held on August 4th at 11 a.m. ET will decide how long customers or creditors must submit proof of claims against Voyager. Participants who wish to participate will have until Friday, July 28 to submit written comments to the court.
U.S. Bankruptcy Judge Michael Wiles admitted only a few attorneys from other jurisdictions as unsecured creditors to the case, which is currently being heard in Southern District of New York.
The judge approved Paul R. Hage of Jaffe Raitt Heuer & Weiss, Michigan, as Raznick’s attorney. Raznick’s media company is based out of Detroit. According to SimilarWeb data, the financial media publication employs fewer than 200 people and generates between $15 million- $25 million annually.
Hage said in an email that “I would rather not comment on this case at the moment.” “The committee was appointed just yesterday. It is focusing on interviewing and retaining professionals in order to maximize recovery for the parties they represent.”
Raznick did not respond to a request from Decrypt for comment immediately.
Raznick was not listed as an unsecured creditor by Voyager Digital CEO Steve Erhlich in his initial bankruptcy filing on July 6. However, Raznick was not named as an unsecured creditor in the initial bankruptcy filing by Voyager Digital CEO Steve Erhlich on July 6.
The filing does not identify any of the 50 largest unpaid creditors.
Raznick would not have been elected to the creditors’ panel if he didn’t have one of the largest claims against Voyager. This could range from $3 million to $10million.
Raznick, for his part has kept quiet about his involvement with the Voyager bankruptcy. However, social media posts at the beginning of July suggest that Raznick wanted the company to survive.
Raznick retweeted messages asking Bankman-Fried for “#savevoyager” on July 5, just a day after Voyager filed its chapter 11 protection petition.
Raznick said, “It’s great and does have loyal users.” He was quoting a Twitter user, who suggested that Tesla CEO Elon Musse “throw Voyager 1B$ loan to save retail investors.”
On June 13, Voyager Digital CEO Steve Ehrlich gave a live interview to the company’s YouTube channel, ” Benzinga Live”. This was just a few weeks after Celsius, the insolvent crypto lender, announced that it had stopped customer withdrawals to ” stabilize liquid.”
Ehrlich is heard announcing that Voyager has ended its previously announced partnership with Celsius after connectivity problems.
“Our platform works as usual. He told Aaron Bry, Benzinga Live host, that our partnership with Celsius had ended a while back. Therefore, customers’ assets are safe and everything is going as normal. “This relationship has dissipated in the last few months, and we have very little [to] none customers assets over at Celsius.”
Ehrlich continues the video by saying that he believes US Dollar Coin (USDC), is the only stablecoin that is “worthy” to be used by Voyager.
Later, it would be the hedge fund Three Arrows Capital (also known as 3AC), defaulting on a $670m loan. This was due to it losing $200 million in the crash of Terra’s algorithmic stabilitycoin UST.
“The Terra-Luna Situation caught us very off guard,” 3AC co-founder Kyle Davies said The Wall Street Journal in June.
Voyager CEO Ehrlich continues to state in the video, “The fact that Voyager is publicly traded means that investors have greater transparency about how their money is being managed.”
He said, “We are as transparent as we can be.”
Voyager stopped trading and ceased customer asset withdrawals on July 1 after issuing 3AC. More than 30 letters were submitted to Voyager’s bankruptcy judge since July 6th, many of which were from Voyager customers seeking access to their money.
Customer “Analicia” V wrote that she felt “strategically robbed in civil ways by Voyager Digital.” She filed a written statement to the court Wednesday afternoon.