Circle Receives $150 Million Worth of USDC From Voyager in Exchange for U.S. Dollars
Voyager Digital, a cryptocurrency trading platform, has reportedly sent $150 million worth of USDC stablecoin to Centre, a joint venture between Circle and Coinbase. The transaction records dates 28th March at 4 P.M EDT through the Voyager 1 wallet.
Voyager Digital Continues Asset Offloading Strategy Despite Regulatory Concerns
The transfer is part of Voyager’s strategy to sell off its by cryptocurrency assets and convert them into US dollars, despite facing regulatory objections from the Securities and Exchange Commission, the New York Department of Financial Services, and the Attorney General of the State of New York, who have raised concerns that this plan may violate securities laws.
Nevertheless, Voyager remains resolute in its asset offloading strategy, and this transfer follows a previous move of around $154.4 million in USDC from Coinbase to Voyager’s Ethereum wallet, known as “Voyager 1,” in February. The recent transfer was executed at 4 p.m. EDT and initiated from Voyager Digital’s “Voyager 1” Ethereum wallet, according to transaction records. Regulatory objections to Voyager’s plan were outlined in a filing that cautioned against regulatory action against Voyager or Binance.US, which could jeopardize their proposed acquisition plan. Despite these challenges, Voyager Digital remains committed to its asset offloading strategy.
Regulatory Setback for Voyager Digital’s Acquisition Plan
On March 27th, a federal judge temporarily halted the $1.3 billion sale of Voyager Digital to BinanceUS, which came on the same day the CFTC sued Binance and its founder for violating derivatives regulations. This ruling happened just one month after the court approved the deal between the two companies. The US regulators are now investigating the legality of the deal. The Department of Justice, the US Attorney’s Office for the Southern District of New York, and the Office of the US Trustee filed appeals earlier in March, arguing that the deal could potentially approve unregistered securities and transactions that violate US securities laws.
After filing for bankruptcy in July 2022 following the $40 billion collapse of the Terra ecosystem, Voyager Digital has been trying to sell a stake to recover funds for its customers. According to court documents, Voyager argued that the DOJ appeals should not hold the company and its customers “in limbo.” BinanceUS had agreed to take over the cryptocurrencies deposited by Voyager’s customers and pay a cash total of $20 million to Voyager. These assets were valued at $1.3 billion in February 2023, accounting for the majority of the deal’s worth.
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