Defunct crypto lender Voyager Digital managed so as to add to its checklist of issues because the trade has run into bother once more. This time round, Voyager Digital caught the attention of the Texas Division of Banking (DOB) and the Texas State Securities Board (SSB).
The companies filed a plea with the USA Chapter Courtroom for the Southern District of New York, objecting to the disclosure assertion filed by Voyager throughout its Chapter 11 chapter submitting.
Voyager’s methodology deemed questionable
Talking on the collectors’ plight, the submitting famous that whereas Voyager’s assertion asserted that collectors could get a 70% return, that determine could possibly be argued as hypothetical. This was as a result of the quantity was primarily based on the trade’s estimation of “Voyager’s cryptocurrency property primarily based on 20-day common coin costs as of September 29, 2022.”
Attorneys showing for the Texas state authorities questioned the methodology utilized in calculating the honest market worth of Voyager’s property previous to its chapter.
“The debtors (Voyager) have constantly managed the circulation of related info to collectors and events in curiosity , and the Amended Disclosure Assertion follows this sample of conduct by failing to offer collectors and events in curiosity adequate info to make an knowledgeable determination” the submitting learn.
The attorneys additionally identified that crypto trade FTX supplied its customers a product that was much like Voyager’s “Earn Program”. Apparently, a number of U.S states additionally issued stop and desist orders for this product.
Calls for made by the regulators
The regulators at hand demanded that the chapter courtroom deny the disclosure assertion submitted by Voyager Digital till appropriately amended. Moreover, the SSB and the Texas DOB additionally demanded the bancrupt trade to furnish the methodology it used to calculate the honest market worth for its crypto property.
The FTX connection
On 27 September, Voyager announced that FTX was the very best and greatest bidder for its property, following a number of rounds of bidding within the public sale course of that lasted two weeks.
FTX’s bid was reportedly round $1.42 billion, of which $1.3 billion was for Voyager’s crypto property, and one other $111 million for added consideration.