The bankrupt crypto lender Voyager is not done selling its huge holdings of Shiba Inu (SHIB), according to new on-chain data. The analytics firm Lookonchain has released an update on how much crypto the embattled lender is currently in control of. According to the firm, Voyager now has 5,170,000,000,000 SHIB Worth $57,283,600. That amount is […]
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A U.S. judge scolded the SEC over its non-specificity on its objection to Voyager’s restructuring deal and asked for specifics on its concerns.
The bankruptcy judge on Voyager Digital’s case has reportedly scolded the United States securities regulator over its ambiguous reasoning for objecting to the crypto lending firm’s proposed sale to Binance.US.
At a Mar. 2 hearing in a New York court, U.S. bankruptcy judge Michael Wiles said the Securities and Exchange Commission (SEC) had basically asked to “stop everybody in their tracks” without explaining how to address concerns it had over the deal according to a Reuters report.
The court was considering a restructuring plan announced on Dec. 19 last year to bring Voyager out of Chapter 11 bankruptcy that would see crypto exchange Binance.US acquire its assets for $1.02 billion — an option Voyager said at the time represented the “highest and best bid for its assets.”
The SEC however filed an objection to the sale on Feb. 22 claiming aspects of the restructuring plan could breach securities laws, namely the crypto transactions that will need to happen to rebalance funds to redistribute to Voyager account holders.
In court, SEC attorney William Uptegrove offered a reserved answer to Judge Wiles when asked if the regulator believes the plan violated the law, saying:
"We can't take a position at this point. The SEC is a deliberative body, and its process is a nonpublic one by federal law."
Wiles hit back saying "deliberative is one thing, but what have you done?" and added, "if there are reasons to be concerned here, I need to hear specifics."
⚠️ Judge Wiles slamming the SEC rep about their objection. ⚠️
— VGX Heroes (@VGX_Heroes) March 2, 2023
Says, (paraphrase) "You're asking the debtor to prove that the cryptos being transacted are not securities, but you've given no regulatory guide as to what that is."
The sale requires court approval, along with the go-ahead from the SEC and the Committee on Foreign Investment in the United States (CFIUS) which is probing the deal to review if it will entail a foreign investment and raise national security concerns.
Judge Wiles is set to hear continued arguments on the bankruptcy plan on Mar. 3.
Related: FTC announces investigation into Voyager’s ‘deceptive and unfair marketing’ of crypto
The proposed Binance.US plan would transfer Voyager customers to the crypto exchange, who would be able to withdraw their funds for the first time since the platform filed for bankruptcy in July last year.
Customers would reportedly recover over 70% of their deposited value as at the time of the bankruptcy, in a poll of 61,300 account holders with claims against the crypto lender, the plan was favored by 97% of Voyager’s customers.
On-chain data shows that trillions of Shiba Inu (SHIB) tokens remain in the reserves of bankrupt crypto lender Voyager. The blockchain-tracking firm Lookonchain says Voyager’s reserves amount to $631 million worth of crypto, including $81 million worth of the top meme altcoin SHIB. “And Voyager currently holds ~$631 million assets. Including: 172,223 ETH ($276 million) $186 […]
The post 6,500,000,000,000 Shiba Inu Worth $81,000,000 in Bankrupt Crypto Lender Voyager Reserves: Analytics Firm appeared first on The Daily Hodl.
2022 was a year of phenomenal cryptocurrency blowouts, as several projects collapsed and many more are on life support after the entire ecosystem was shattered. The fallout from these digital currency projects has not only removed billions of dollars in value from the crypto economy, but also eroded trust. The following is a look at […]
In an objection to Voyager’s proposed restructuring plan, the commission argued some of the involved parties should not be exempt from certain financial claims in the future.
The United States Federal Trade Commission said it had started an investigation of crypto lending firm Voyager Digital parallel to the company’s bankruptcy proceedings.
In a Feb. 22 filing in U.S. Bankruptcy Court for the Southern District of New York, the FTC said it was investigating Voyager and its employees “for their deceptive and unfair marketing of cryptocurrency to the public.” The announcement followed Bankruptcy Judge Michael Wiles initially approving of a plan in which Voyager debtors would sell the firm’s assets to Binance.US for more than $1 billion.
According to the FTC filing — an objection to the debtors’ plan — the commission argued some of the parties involved in Voyager’s bankruptcy proceedings should not be exempt from certain financial claims, “including debts for ‘false representation,’ and ‘false pretenses’”:
“By not excluding, inter alia, false pretenses and false representations, the release can be read to interfere with causes of action by a governmental unit like the FTC. This is impermissible [...] the FTC respectfully requests the Court deny confirmation of the Debtors’ Proposed Plan.”
New @FTC analysis shows that cryptocurrency scams are proliferating, with about 1 out of every 4 dollars reported lost to fraud paid in cryptocurrency.
— Lina Khan (@linakhanFTC) June 3, 2022
Since the start of 2021, consumers have reported losing over $1 billion in crypto to scams.https://t.co/AnWqzj93jK
Voyager filed for Chapter 11 bankruptcy in the United States in July 2022 prior to similar filings from Celsius Network, FTX and BlockFi. One of the proposed plans for restructuring the firm would have Binance.US acquire Voyager’s assets, but the U.S. Securities and Exchange Commission has objected to the move, citing a lack of “necessary information.”
Related: Voyager creditors serve SBF a subpoena to appear in court for a ‘remote deposition’
Bankruptcy proceedings for Celsius and FTX are also ongoing, with respective chief executive officers Alex Mashinsky and Sam Bankman-Fried facing scrutiny from U.S. authorities for their alleged actions prior to the companies filing for Chapter 11. Under Celsius’ proposed restructuring plan, more than 85% of users were expected to recover roughly 70% of their funds.
A leading cryptocurrency analytics firm says a huge amount of Shiba Inu (SHIB) and Ethereum (ETH) is on its way to the US-based crypto exchange Coinbase. According to PeckShield’s Twitter alert account, about $7.6 million in crypto assets, including 2,500 ETH worth $4.2 million and 250 billion SHIB worth $3.4 million, were sent to the […]
The post 250,000,000,000 Shiba Inu and 2,500 Ethereum Sent to Coinbase in Pair of Massive Transfers: PeckShield appeared first on The Daily Hodl.
New data reveals that bankrupt crypto lender Voyager Digital is suddenly moving hundreds of billions of Shiba Inu (SHIB) tokens to Coinbase. According to blockchain cybersecurity company Peckshield, the embattled crypto firm has transferred a total of $28.7 million worth of digital assets to various crypto exchange platforms. Peckshield finds that Voyager moved 250 billion […]
The post 250,000,000,000 Shiba Inu (SHIB) Abruptly Moved to Coinbase by Bankrupt Crypto Lender Voyager appeared first on The Daily Hodl.
Following the recent court filing from liquidators for Three Arrows Capital (3AC) claiming frustration with the 3AC co-founders for allegedly failing to respond to subpoenas sent via Twitter. Su Zhu, one of the co-founders, recently tweeted about his new crypto venture, Open Exchange. The exchange aims to provide users with the ability to trade or […]
The 120-page motion came from a creditor who asked for the appointment of a chapter 11 trustee citing alleged fraud and incompetence at Voyager.
A Voyager creditor and finance lawyer wants to see a chapter 11 trustee appointed in crypto brokerage Voyager Digital’s bankruptcy trial, which would see Voyager lose control of its estate.
In a Feb. 1 motion, Voyager creditor Michelle DiVita accused Voyager of having a “history of financial statement inaccuracies and public misrepresentations that were known, or reasonably discoverable, at the beginning of the bankruptcy proceeding."
Due to this pre-bankruptcy conduct, DiVita believes that an examiner or trustee should have been requested, and is now doing so herself.
The filing alleges that Voyager “concealed the true nature of its lending activities by publishing financial reports that materially understated its loan positions by more than $1 billion USD.”
@investvoyager loans disclosed on March 31 financial report: $2.2B.
— Michelle DiVita (@ChelleDiVita) January 13, 2023
Actual loans on April 3: $3.1B
$1.1B concealed in one business day.
Releases are unconscionable @VoyagerUCC @DOJCrimDiv #VGX pic.twitter.com/dP8g9yvY48
A former director and CIO for Voyager, Shigo Lavine, highlighted some of the key accusations made in the filing in a lengthy Feb. 1 twitter thread.
For example, Voyager allegedly underreported a loan to crypto hedge fund Three Arrows Capital by $609 million and also undervalued Bitcoin (BTC) in its financial reports by 546% to downplay the size of its loans.
The Debtor provided assurances in regards to its ability to raise capital and meet liquidity requirements.
— Shingo Lavine (@shingolavine) February 1, 2023
This led many (including myself) to incorrectly conclude that Voyager would be able to survive this despite 3AC going under pic.twitter.com/jjnloWDG7A
According to the filing, crypto exchange Coinbase also caught wind of Voyager’s “financial reporting inconsistencies,” and had reportedly backed out of a potential deal to acquire the assets of Voyager after finding “the financials don’t add up.”
The bankruptcy proceedings already involve a United States Trustee, who is required to bring a motion to appoint a chapter 11 trustee when there are “reasonable grounds to suspect” that the debtor “participated in actual fraud, dishonesty or criminal conduct.”
While the U.S. Trustee appoints a creditors committee and reviews applications for the recompensation of professionals amongst other duties, they may also hire a bankruptcy trustee to manage the debtor’s affairs if the debtors are not allowed to do so themselves.
Cointelegraph has contacted Voyager for a response to the allegations and the motion but did not receive an immediate response.
Related: Voyager tells court Binance acquisition plan is ‘sound business judgment,’ urgently needed
In other news, both Voyager and its creditors have pushed back at an attempt by bankrupt trading firm Alameda Research to claw back $446 million in loan repayments.
After commencing chapter 11 proceedings on Jul. 5, Voyager had demanded the repayment of all its outstanding loans to Alameda, and was repaid in full.
However, Alameda sought to recover the funds in a Jan. 30 court filing, arguing that because they repaid the loans within 90 days of filing for chapter 11 bankruptcy themselves, they could “claw back” these funds for the benefit of Alameda creditors.
Voyager says that its creditors have suffered “substantial harm” due to Alameda making a bid for Voyager’s assets that it could not honor, costing them in excess of $100 million. Voyager argues that this makes Alameda’s claim subordinate to those of its other creditors.
Alameda Research, the sister company of bankrupt digital asset exchange FTX, is suing bankrupt crypto lender Voyager in an attempt to recover nearly $446 million in loan payments, according to new court filings. Alameda filed a complaint on Monday in the U.S. District Court of Delaware, requesting “no less” than $445.8 million in repayments from […]
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