Voyager Digital Is Being Sued For Unregistered Cryptocurrency Sales.
A lawsuit has been filed against US crypto exchange Voyager Digital for selling unregistered securities. The complaint comes after many regulatory actions aimed at limiting the use of crypto-yielding schemes.
Voyager Digital was faced with additional claims of selling unregistered securities via its Voyager Earn Program this week, according to news reports.
Attorneys Adam Moskowitz and Stuart Grossman filed a case in federal court in Miami on Thursday. According to the lawyers, Voyager Digital should have filed its Voyager Earn Program with the SEC, which offers incentives in Bitcoin (BTC), Ethereum (ETH), and USD Coin (USDC), among other cryptos.
Users can stack an earn on over 40 assets with the Voyager Earn Program. Stackers can earn different levels of rewards depending on how much they can hold. Tiered annual percentage yields (APY) can reach as high as 12%, with APYs as high as 9% for stacking USDC on the platform.
In December, the attorneys filed a case against Voyager Digital on behalf of Florida resident Mark Cassidy, saying that the company charged hidden fees and made deceptive promises. The lawyers also mentioned the SEC’s actions against the crypto business in the new claim.
Voyager Digital received cease and desist orders from US states earlier this year for marketing crypto-yielding products. The states of Indiana, Kentucky, New Jersey, and Oklahoma were among them.
Coinbase stated in 2021 that the Securities and Exchange Commission (SEC) intends to sue them over the scheduled release of “Coinbase Lend.” Customers can earn interest on certain cryptos using Coinbase Lend, with APYs starting at 4% on USD Coin.
Despite the SEC’s failure to present any basis for sending a Wells notice, Coinbase canceled the Lend program as a result of the SEC’s intentions.
By discontinuing its Lend program, Coinbase is sure to save a significant amount of money. BlockFi was fined $100 million this year for failing to register the offer and sale of its cryptocurrency loan products.
The SEC claimed that BlockFi’s high-yielding accounts were unregistered securities, which led to the settlement.
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