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Texas Officials Object to Voyager's Current Disclosure Statement

The Texas officials said that Voyager's disclosure statement, which claimed that creditors may get a 70% return, failed to describe the technique used to derive coin values.

15 Oct 2022 By: Simran Mishra
Texas Officials Obje

The Texas State Securities Board (SSB) and the Texas Department of Banking (DOB) filed a legal objection to Voyager Digital's disclosure statement, questioning the numerous procedures and calculations used to determine the fair market value of the insolvent exchange's crypto assets.

The counsel for the SSB and DOB objected to the order recognizing the sufficiency of Voyager's modified disclosure statement in a complaint filed with the US Bankruptcy Court for the Southern District of New York. In July 2022, Voyager Digital filed for Chapter 11 bankruptcy in New York, offering a recovery plan for investors.

The Texas state authorities said that Voyager's disclosure statement, which claimed that creditors might get a 70% return, fails to clarify the methodology used to determine average coin values.

The counsel also informed the court that crypto exchange FTX provides a product similar to 'Voyager Earn Program,' a Voyager service that has received cease-and-desist orders from numerous jurisdictions in the United States.

As a result, the SSB and DOB are requesting that Voyager's disclosure statement be denied in its current form. Furthermore, it requires Voyager to reveal the process and calculations used to estimate its fair market value in order to recover funds.

On October 5, FTX US secured the winning offer for Voyager's assets. According to Voyager, the bid consisted of the fair market value of its crypto assets at a future date to be decided, believed to be roughly $1.3 billion, plus $111 million in "incremental value."

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

On September 30, the SSB, DOB, and Vermont Department of Financial Regulation objected to crypto lender Celsius' intentions to sell off its stablecoin assets, saying that the proceeds might be used to continue operations in violation of state regulations.

Celsius petitioned the United States Bankruptcy Court for the Southern District of New York for permission to liquidate its $23 million stablecoin assets.

Read also: Will Crypto Be Affected by JPMorgan's 17% Lower Profit?