Texas Government Officials Disagree With Voyager’s Disclosure Statement
The Voyager Digital disclosure statement was challenged in court by the Texas State Securities Board (SSB) and Texas Department of Banking (DOB), who questioned the numerous approaches and computations used to determine the fair market value of the defunct exchange’s crypto assets.
The counsel for the SSB and DOB opposed to the order approving the sufficiency of Voyager’s modified disclosure statement in a complaint submitted to the United States Bankruptcy Court for the Southern District of New York. In July 2022, Voyager Digital said it would file for Chapter 11 bankruptcy in New York while also offering investors a recovery strategy.
Texas alleged that Voyager’s disclosure statement
The state of Texas alleged that Voyager’s disclosure statement, which claimed that creditors may receive a 70% return, is deficient in that it doesn’t explain how the average coin prices were determined, adding that:
“The Debtors (Voyager) have never been licensed by the SSB or the DOB and faces very large fines and penalties for operating without a license. FTX is also not licensed to do business in the State of Texas.”
The lawyers also informed the court that the cryptocurrency exchange FTX offers a product that is comparable to Voyager’s “Voyager Earn Program,” which has received cease-and-desist orders from numerous US jurisdictions.
The SSB and DOB are asking for the disclosure statement from Voyager to be rejected in its current form as a resolution. Additionally, it requires Voyager to make public the formulas and computations used to estimate its fair market value for the purpose of funds recovery.
On October 5, FTX US received the highest proposal for the Voyager assets. The deal, according to Voyager, included $111 million in “incremental value” in addition to the fair market value of the company’s crypto holdings “at a to-be-determined point in the future,” which is projected to be around $1.3 billion.
As of the time of writing, the case’s hearing date has been set for October 19.
The plans of cryptocurrency lender Celsius to sell off its stablecoin assets came under fire on September 30 from the SSB, DOB, and Vermont Department of Financial Regulation. They contended that the company could use the proceeds to reopen for business in contravention of local regulations.
In order to sell its stablecoin holdings, which are reportedly worth $23 million, Celsius applied for approval from the United States Bankruptcy Court for the Southern District of New York.
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