Just like we have exponential growth, we need to have exponential implosion!
I would argue, more lessons to be learned on the way down :)
I would argue, more lessons to be learned on the way down :)
Voyager deliberately misled its customers by claiming their assets were FDIC insured. The only lesson to be learned here is that fraud is alive and well.
People were genuinely duped, and I hope there is some consequence to Voyager leadership.
This is one of those cases where litigation to "pierce the corporate veil" and go after the parent companies and the company officers individually may be worthwhile. Wikipedia:
"In the United States, corporate veil piercing is the most litigated issue in corporate law. Although courts are reluctant to hold an active shareholder liable for actions that are legally the responsibility of the corporation, even if the corporation has a single shareholder, they will often do so if the corporation was markedly noncompliant with corporate formalities, to prevent fraud, or to achieve equity in certain cases of undercapitalization."
A case can be made for fraud here, in that the company represented that it was investing money in "risk free" investments while actually loaning money to high risk debtors. Piercing the corporate veil is rare outside of bankruptcy, but not that unusual when bankruptcy is involved. This is a case of undercaptitalization, where someone went into the financial services business without enough money of their own to cover risks.
Their headquarters is in Jersey City, NJ. Where there are lawyers who go after corporate fraud routinely.
But where are they incorporated? Delaware ?