Texas authorities object to Voyager’s disclosure statement in its current form

Texas authorities object to Voyager's disclosure statement in its current form

Texas State Securities Board and Texas Department of Banking raised objections in court to Voyager Digital’s disclosure statement. They questioned the different methodologies and calculations used for estimating the fair market value of Voyager Digital’s crypto assets.

The attorneys for the SSB, DOB and the United States Bankruptcy Court in the Southern District of New York filed a pleading objecting to the order approving Voyager’s amended disclosure. Voyager Digital filed for Chapter 11 bankruptcy protection in New York in July 2022. It also proposed a plan of recovery for investors.

Texas state authorities claimed that Voyager’s disclosure statement that creditors could get a 70% return on their investment, in which it stated that creditors could receive a 70% return on their investment, did not explain how the average coin price was calculated. They also added that:

“The Debtors (Voyagers) have not been licensed by either the SSB nor the DOB. They face very severe fines and penalties for operating in the absence of a license. FTX is not licensed to conduct business in Texas.

Further, the attorneys emphasized that crypto exchange FTX provides a product similar the Voyager Earn Program. This Voyager offering has been subject to cease and desist orders from several states in the US.

The SSB, DOB and DOB request that Voyager’s current disclosure statement be denied. It demands that Voyager also discloses the method and calculations used in determining its fair market value to recover funds.

FTX USA won the bid to acquire Voyager’s assets on Oct. 5. Voyager stated that the bid consisted of the fair value of Voyager’s crypto holdings at a “to-be-determined future date” of around $1.3 billion and $111 million in “incremental values.”

At the time of writing, the hearing date was set for October 19.

Related: Senator Warren leads charge against energy consumption claims regarding Texas crypto miners

The SSB, DOB, and Vermont Department of Financial Regulation opposed the plans of crypto lender Celsius to sell its stablecoin holdings. They argued that the firm could use the capital to continue operating in violation of state laws.

Celsius reached out the United States Bankruptcy Court of the Southern District of New York to request permission to sell its stablecoin holdings. They are estimated to be worth $23 Million.

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