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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.

Texas Government Officials Disagree With Voyager’s Disclosure Statement 

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

Texas Government Officials Disagree With 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.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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Annie

CoinCu News

Annie

Championing positive change through finance, I've dedicated over eight years to sustainability and environmental journalism. My passion lies in uncovering companies that make a real difference in the world and guiding investors towards them. My expertise lies in navigating the world of sustainable investing, analyzing ESG (Environmental, Social, and Governance) criteria, and exploring the exciting field of impact investing. "Invest in a better future," I often say. That's the driving force behind my work at Coincu – to empower readers with knowledge and insights to make investment decisions that create a positive impact.

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