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Texas authorities object to Voyager’s disclosure statement as it stands

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The Texas State Securities Board (SSB) and the Texas Department of Banking (DOB) filed an objection in court against them Voyager Digital Disclosure Statementand questioning the various methodologies and calculations used to estimate the fair market value of crypto assets on a bankrupt exchange.

in pleading Foot With the US Bankruptcy Court for the Southern District of New York, SSB and DOB attorneys contested the order agreeing to the sufficiency of Voyager’s revised disclosure statement. Voyager Digital filed for Chapter 11 bankruptcy in New York in July 2022, proposing a recovery plan for investors.

Texas authorities argued that Voyager’s disclosure statement, which asserted that creditors could receive a 70% return, failed to explain the methodology used to calculate average coin prices, adding that:

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“Debtors (Voyager) have never been licensed by the SSB or DOB and face very significant fines and penalties for operating without a license. FTX is also not licensed to do business in Texas.”

The attorneys also highlighted that through the court, crypto exchange FTX is offering a product similar to the Voyager Earn, a Voyager offering that has been subject to cease and desist orders from multiple states in the United States.

As a resolution, the SSB and DOB are seeking to reject Voyager’s disclosure statement in its current form. Furthermore, it demands Voyager disclose the methodology and calculations used to determine its fair market value for the refund.

On October 5, FTX US has secured the winning bid for Voyager assets. According to Voyager, the offering was made up of the estimated fair market value of its crypto holdings at “a date to be determined” of approximately $1.3 billion, along with $111 million in “increasing value.”

The hearing in the case is scheduled for October 19 at the time of writing.

Related: Senator Warren leads indictment against power consumption claims on crypto miners in Texas

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On September 30, the SSB, DOB, and Vermont Department of Financial Regulation Objection to crypto lender Celsius’ plans to sell his stablecoin holdingsarguing that the company could use the resulting capital to resume business in violation of state laws.

Celsius has approached the United States Bankruptcy Court for the Southern District of New York, seeking permission to sell its stablecoin holdings, which are said to be worth $23 million.