Voyager Objects To SEC Judgment Claims VGX Token Is Security As $1.02 Billion Binance’s Deal
Key Points:
- Voyager Digital denied the US Securities and Exchange Commission’s claim that its VGX tokens are securities.
- A court filing Sunday on behalf of Voyager said the delayed deal cost the company $10 million a month.
- The company is seeking court approval for Binance.US to acquire the bankrupt company for $1.02 billion.
Voyager Digital, a bankrupt cryptocurrency lender, has refuted charges by the US Securities and Exchange Commission that its VGX token is a security.
The company expressed astonishment at the SEC’s delays and changes in attitude on the topic and demanded a quick conclusion to its bankruptcy case.
Delays in the transaction cost the firm $10 million a month, according to a filing by Voyager in the United States Bankruptcy Court for the Southern District of New York on Sunday.
Mark Renzi, Voyager’s financial adviser, cited CoinDesk reporting of remarks by the SEC’s William Uptegrove, who first declined to take a position on VGX’s status on Thursday and then told the court on Friday that the SEC’s staff believes BinanceUS is operating an illegal securities exchange because financial instruments must be registered with the regulator. According to Uptegrove, the statement did not reflect the opinions of the SEC commissioners.
“This supplemental statement from the SEC’s counsel was a surprise to the Debtors; I understand from the Debtors that they were asked by the SEC to provide information regarding VGX in 2021 and did so in 2021 (approximately a year and a half ago), while subsequent SEC inquiries addressed different topics. While I am neither a lawyer nor a securities law expert (nor am I taking a position on the matter), I have been advised that the Debtors disagree with any assertion, by SEC staff or otherwise, that VGX is a security, and the Debtors’ view is supported by a legal opinion from a nationally recognized law firm,” Renzi said in the SEC filing.
Judge Michael Wiles of the United States Bankruptcy Court looked suspicious of the Securities and Exchange Commission’s (SEC) attempt to halt Binance’s purchase of Voyager Digital’s holdings in the United States.
“I get the feeling that this objection has been made as a kind of cover, so you can say later that we’ll see we raised these issues. You haven’t really, you have done nothing … I need to know specifics.”Wiles said.
Renzi has now offered changes to the deal’s specific language that he says are too modest to require another vote by creditors.
Last July, Voyager declared Chapter 11 bankruptcy. Binance.US announced its acquisition of Voyager in December, but in reaction to SEC discoveries during recent hearings, Binance CEO Changpeng Zhao stated that he could pull out of the deal. The crypto lender is seeking judicial permission for Binance.US’s $1.02 billion acquisition bid.
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.
Join us to keep track of news: https://linktr.ee/coincu
Harold
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Voyager Objects To SEC Judgment Claims VGX Token Is Security As $1.02 Billion Binance’s Deal
Key Points:
- Voyager Digital denied the US Securities and Exchange Commission’s claim that its VGX tokens are securities.
- A court filing Sunday on behalf of Voyager said the delayed deal cost the company $10 million a month.
- The company is seeking court approval for Binance.US to acquire the bankrupt company for $1.02 billion.
Voyager Digital, a bankrupt cryptocurrency lender, has refuted charges by the US Securities and Exchange Commission that its VGX token is a security.
The company expressed astonishment at the SEC’s delays and changes in attitude on the topic and demanded a quick conclusion to its bankruptcy case.
Delays in the transaction cost the firm $10 million a month, according to a filing by Voyager in the United States Bankruptcy Court for the Southern District of New York on Sunday.
Mark Renzi, Voyager’s financial adviser, cited CoinDesk reporting of remarks by the SEC’s William Uptegrove, who first declined to take a position on VGX’s status on Thursday and then told the court on Friday that the SEC’s staff believes BinanceUS is operating an illegal securities exchange because financial instruments must be registered with the regulator. According to Uptegrove, the statement did not reflect the opinions of the SEC commissioners.
“This supplemental statement from the SEC’s counsel was a surprise to the Debtors; I understand from the Debtors that they were asked by the SEC to provide information regarding VGX in 2021 and did so in 2021 (approximately a year and a half ago), while subsequent SEC inquiries addressed different topics. While I am neither a lawyer nor a securities law expert (nor am I taking a position on the matter), I have been advised that the Debtors disagree with any assertion, by SEC staff or otherwise, that VGX is a security, and the Debtors’ view is supported by a legal opinion from a nationally recognized law firm,” Renzi said in the SEC filing.
Judge Michael Wiles of the United States Bankruptcy Court looked suspicious of the Securities and Exchange Commission’s (SEC) attempt to halt Binance’s purchase of Voyager Digital’s holdings in the United States.
“I get the feeling that this objection has been made as a kind of cover, so you can say later that we’ll see we raised these issues. You haven’t really, you have done nothing … I need to know specifics.”Wiles said.
Renzi has now offered changes to the deal’s specific language that he says are too modest to require another vote by creditors.
Last July, Voyager declared Chapter 11 bankruptcy. Binance.US announced its acquisition of Voyager in December, but in reaction to SEC discoveries during recent hearings, Binance CEO Changpeng Zhao stated that he could pull out of the deal. The crypto lender is seeking judicial permission for Binance.US’s $1.02 billion acquisition bid.
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.
Join us to keep track of news: https://linktr.ee/coincu
Harold
Coincu News
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