| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers V > Headlines for Voyager Digital Ltd. > News item |
Voyager Digital’s Chapter 11 plan draws objections from SEC, FTC
By Sarah Lizee
Olympia, Wash., Feb. 24 – Voyager Digital Ltd.’s proposed Chapter 11 plan has drawn objections from the U.S. Securities and Exchange Commission and the Federal Trade Commission, according to documents filed with the U.S. Bankruptcy Court for the Southern District of New York.
The SEC is investigating whether Voyager and others violated the anti-fraud, registration and other provisions of federal securities laws.
“Recent news has highlighted what can go wrong when crypto platforms fail to ensure adequate safeguards over customer assets,” the SEC said in its objection.
“For account holders, there is perhaps no more important issue.”
The SEC said the disclosure statement and plan don’t include necessary information regarding the security of assets on the BAM Trading Services Inc. (Binance US) platform. As previously reported, Voyager is set to sell its assets to Binance in a transaction valued at roughly $1.022 billion.
The plan and disclosure statement also don’t describe the impact of potential regulatory actions on the purchaser, on account holders and their ability to trade crypto assets, the SEC said.
There are several public reports and press accounts concerning investigations into the purchaser and its affiliates.
“Regulatory actions, whether involving Voyager, Binance US or both, could render the transactions in the plan impossible to consummate, thus making the plan unfeasible,” the SEC said.
The FTC has also launched an investigation into the debtors for deceptive and unfair marketing of cryptocurrency to the public.
The FTC said it objects to confirmation because the proposed plan grants the debtors a discharge of fraud-related debt held by a governmental unit, which isn’t permitted under bankruptcy code.
A hearing on the plan is scheduled for March 2.
Voyager Digital is a cryptocurrency broker based in New York. The company filed bankruptcy on July 5, 2022 under Chapter 11 case number 22-10945.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.