U.S. Judge Queries Sec’s Stance on Voyager-Binance Merger
In a recent court hearing, US District Judge Michael Wiles expressed frustration with the Securities and Exchange Commission (SEC) over their objection to the Voyager-Binance.US deal.
Judge Wiles criticized the regulatory agency for failing to provide clear guidelines on what qualifies as a security in the cryptocurrency market. As a result, firms such as Voyager have found it challenging to negotiate the regulatory framework.
Judge slams SEC on crypto securities
During the hearing, Judge Wiles slammed the SEC representative for asking Voyager to prove that the cryptos being transacted are not securities while providing no regulatory guidance on how to do so.
Consequently, the U.S. Trustee’s statement regarding the Voyager-Binance.US deal has raised concerns about the transparency and fairness of the voting process. According to the Trustee, only 6% of eligible creditors voted on the proposal, which makes the 97% approval rate misleading.
Further, the low turnout suggests that many creditors may not have been aware of the details of the deal or did not feel that their vote would make a difference. The Trustee also raised concerns about the disclosure statement, which they felt did not provide enough information for creditors to make an informed decision.
These issues highlight the importance of transparency and clear communication in the bankruptcy process, particularly when it comes to complex transactions involving cryptocurrency assets.
Voyager to Sell $VGX Contract
In a recent development, a representative from Voyager stated that the company intends to sell the $VGX smart contract to a third party, which could potentially help increase the recovery percentage for creditors.
The sale of the smart contract would allow Voyager to generate additional funds that could be used to pay back creditors, and could also help to increase the value of the $VGX token.
While the details of the sale have not yet been finalized, this move could provide a much-needed boost to the bankruptcy proceedings and help to ensure a fair and equitable outcome for all parties involved.
According to the most recent report on Voyager’s financial condition, the firm is in a pretty healthy liquidity position, having over $40 million in reserves. Additionally, Voyager is currently holding over 8,000 BTC, which underscores the company’s commitment to building a strong cryptocurrency portfolio.
However, despite these positive developments, the company is still facing significant challenges as it works to finalize the Voyager-Binance.US deal. In an effort to rebalance its holdings and prepare for the closing of the deal, Voyager is likely to make strategic moves to divest certain assets and reallocate resources.
With the current closing date estimated to be in April, time is of the essence for Voyager to secure a favorable outcome and emerge from bankruptcy in a strong position.
As the legal battle over the Voyager-Binance.US deal continues, it remains to be seen how these concerns will be addressed and whether the deal will ultimately be approved.
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