A trustee will be appointed to take over the bankruptcy of Flipcause Inc. following concerns raised by California attorney general Rob Bonta that the nonprofit fundraising platform mismanaged $29 million in charitable funds.
Following an agreement by Flipcause and the state of California, a Chapter 11 trustee will be appointed to commandeer the company’s proceedings, Judge Thomas M. Horan of the US Bankruptcy Court for the District of Delaware said in an order Tuesday.
In his Jan. 5 motion, Bonta accused the company of mismanaging its finances and refusing to provide the attorney general’s office with an accounting of charitable ...