The Texas State Securities Board (SSB) and the Texas Department of Banking (DOB) have filed an appeal in court against Voyager Digital’s disclosure statement, questioning the various methods and calculations used to determine the crypto’s fair market value. -Estimate the assets of the bankrupt stock exchange.
In a plea filed with the United States Bankruptcy Court for the Southern District of New York, attorneys for the SSB and DOB objected to the order approving the adequacy of Voyager’s amended disclosure statement. Voyager Digital filed for Chapter 11 bankruptcy in New York in July 2022 and proposed an investor recovery plan.
Texas state authorities argued that Voyager’s disclosure statement, which stated that creditors could get a 70% return, does not explain the method used to calculate average coin prices, adding that:
“The debtors (Voyager) have never been licensed by the SSB or DOB and face very high fines and penalties for working without a permit. FTX is also not licensed to do business in the state of Texas.”
The lawyers further emphasized that in court that crypto exchange FTX is offering a product similar to “Voyager Earn Program,” a Voyager offering that is subject to shutdown orders from multiple states in the US.
As a resolution, the SSB and DOB request the denial of Voyager’s disclosure statement in its current form. In addition, it requires Voyager to disclose the methodology and calculations used to determine the fair market value for the recovery of funds.
On October 5, FTX US secured the winning bid for Voyager’s assets. According to Voyager, the offer consisted of the fair market value of its crypto holdings “at a future date to be determined” estimated at approximately $1.3 billion, along with $111 million in “incremental value”.
The hearing date for the case is scheduled for October 19 at the time of writing.
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On September 30, the SSB, DOB and the Vermont Department of Financial Regulation objected to cryptocurrency lender Celsius’ plans to sell its stablecoin holdings, arguing that the company could use the resulting capital to resume operations in violation of the state laws.
Celsius contacted the United States Bankruptcy Court for the Southern District of New York and requested permission to sell its stablecoin holdings, reportedly worth $23 million.
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