Bitcoin News and Price | Bitcoin.News

Court Approves Voyager Digital’s Acquisition by Binance.US

by Blockchain NewsMarch 16, 2023

The United States District Court for the Southern District of New York has approved Binance.US’s acquisition of bankrupt brokerage company Voyager Digital, rejecting the US government’s motion to halt the deal. Judge Michael Wiles ruled that any delays in the acquisition would harm Voyager’s former clients who are waiting to return their funds. The court also confirmed its prior approval of Voyager Digital’s Chapter 11 bankruptcy plan, which involves selling billions of dollars in assets to Binance.US to regain liquidity and pay back customers.

The government’s appeal for a stay of the confirmation order was denied, as Judge Wiles deemed the accusations of fraud, theft, or tax avoidance as exaggerations and mischaracterizations. The appeal had also demanded the removal of a provision preventing US authorities from pursuing anyone involved with the sale. The court’s decision allows Binance.US to close the sale and issue repayment tokens to impacted Voyager customers.

The US Securities and Exchange Commission had objected to the redistribution of funds from Voyager to Binance.US, citing violations of US securities laws. However, Judge Wiles rejected their arguments, stating that 97% of 61,300 Voyager account holders favored the restructuring plan. The bankruptcy plan is expected to result in Voyager creditors recovering approximately 73% of the value of their funds.

This ruling is a significant win for Voyager Digital and Binance.US, as it allows them to move forward with their acquisition plans and repay impacted customers. It also sets a precedent for future bankruptcy cases involving crypto-related companies, as it shows that bankruptcy courts may be willing to approve deals involving the transfer of crypto assets. The decision highlights the importance of transparency and customer satisfaction in bankruptcy proceedings, as shown by the overwhelming support for Voyager Digital’s restructuring plan. Overall, this ruling is a positive step towards building a more stable and trustworthy crypto ecosystem.

Source

US Officials Oppose Voyager Sale Provision

by Blockchain NewsMarch 15, 2023

United States officials have expressed their desire to remove a provision from the bankruptcy plan of Voyager Digital, a defunct lender, as they believe it would hinder the government’s ability to enforce its police and regulatory powers. Voyager Digital has proposed selling its digital assets to Binance.US, a leading cryptocurrency exchange. However, the provision in question would prevent US officials from legally pursuing anyone involved in the sale.

In a motion submitted to a New York bankruptcy court on March 14, U.S. trustee William Harrington, along with other government attorneys, claimed that the court “improperly exceeded its statutory authority” when it approved the pardoning provision. They have requested a delay of two weeks for the court’s approval of the sale, allowing them time to file an appeal.

The provision aims to protect those involved in carrying out the sale from being held personally liable for its implementation. The court approved this measure on March 7, after a February 28 filing revealed that 97% of Voyager customers were in favor of the plan. While the U.S. officials have no objections to other aspects of the proposed sale, they argue that the provision would impede their ability to enforce their regulatory powers.

On March 6, the U.S. Securities and Exchange Commission (SEC) also raised objections to the plan, particularly the “extraordinary” and “highly improper” exculpation provision. The SEC argued that the repayment token would constitute an unregistered security offering and that Binance.US is operating an unregulated securities exchange.

Voyager Digital’s proposed sale comes after the company filed for bankruptcy due to financial troubles, which have been affecting the crypto lending industry. Crypto lenders, such as Voyager, provide customers with loans backed by their cryptocurrency holdings. In recent times, these lenders have faced increased scrutiny from regulatory bodies, leading to difficulties in continuing operations.

A hearing on the issue is scheduled for March 15 at 2:00 pm Eastern Time. Based on the latest estimates, the plan is expected to result in Voyager creditors recovering approximately 73% of the value of their funds. The outcome of this case will have a significant impact on the future of crypto lending and may set a precedent for similar cases involving bankruptcy sales and regulatory enforcement.

In conclusion, US officials are contesting a provision in Voyager Digital’s bankruptcy plan that would prevent legal pursuit of those involved in the sale of its assets to Binance.US. With a hearing scheduled for March 15, the outcome may have broader implications for the crypto lending industry and regulatory enforcement.

Source

Tagged : Bankruptcy / Binance.Us. / News / PROVISION / U.S. OFFICIALS / Voyager Digital

DOJ Appeals Against Approval of Voyager-Binance.US Asset Sale

by Blockchain NewsMarch 10, 2023

The ongoing legal battle between Voyager Digital and U.S. regulators has taken another turn. The U.S. Department of Justice (DOJ) has filed an appeal against the latest decision in the case, which pertains to the sale of assets between Voyager Digital and Binance.US.

On March 8, the U.S. Trustee for Region 2 made the appeal to the U.S. District Court for the Southern District of New York against the approval of Voyager Digital’s Chapter 11 bankruptcy plan. The plan was confirmed only a day prior by U.S. bankruptcy judge Michael Wiles, despite objections from the SEC and other regulators.

The Chapter 11 plan would have allowed Voyager Digital to sell billions of dollars in assets to Binance.US in an effort to regain liquidity to pay back customers. In court filings, Voyager claimed that this deal would allow the company to recover an estimated 73% of customer funds.

However, the SEC and other regulators have been outspokenly against this deal, citing concerns over securities law. In a court filing from Feb. 24, the Texas State Securities Board and the Department of Banking objected to the deal with Binance.US.

Despite these objections, Judge Wiles approved the Chapter 11 plan, stating that he could not put the case into an “indeterminate deep freeze while regulators figure out whether they believe there are problems with the transaction and plan.“ He also noted that 97% of Voyager customers favored the Binance.US deal, according to a poll released in a court filing on Feb. 28.

If U.S. regulators successfully block this deal, Voyager may have to liquidate. The initial bankruptcy was filed on July 5, 2022, as the brokers attempted to restructure and “return value” to more than 100,000 customers.

This legal battle highlights the challenges that cryptocurrency companies face in navigating the regulatory landscape. While the industry is still largely unregulated, U.S. authorities have begun to take a more aggressive stance in recent years. As a result, many companies are struggling to comply with existing regulations and stay on the right side of the law.

For Voyager Digital, the outcome of this legal battle will have significant implications. If the Chapter 11 plan is ultimately approved, the company will be able to sell assets to Binance.US and recover a significant portion of customer funds. However, if regulators block the deal, the company may be forced to liquidate, leaving customers without recourse.

In the meantime, the case serves as a reminder of the importance of regulatory compliance in the cryptocurrency industry. As authorities continue to crack down on illicit activities and push for greater transparency, companies that fail to comply may face severe consequences.

Source

Tagged : Bankruptcy / Binance.Us. / CHAPTER 11 / Doj / News / Voyager Digital

Voyager Digital Sells Assets via Coinbase Amid Bankruptcy

by Blockchain NewsMarch 2, 2023

Voyager Digital, the New York-based centralized finance (CeFi) platform, filed for Chapter 11 bankruptcy in July 2022 after it failed to secure a new line of credit. The company, which provides cryptocurrency trading services for retail and institutional investors, had been struggling with mounting debt and declining user growth.

Since then, Voyager has been seeking ways to raise capital and pay off its creditors. According to recent reports, the company has turned to Coinbase, one of the largest cryptocurrency exchanges in the world, to sell off some of its assets and raise cash.

On-chain data from Lookonchain, an independent analytics firm, suggest that Voyager has sent at least $100 million in USDC to Coinbase in the last three days. The transfers, which started on February 24, included a mix of cryptocurrency tokens, such as Ether, Shiba Inu, and Chainlink.

Despite the sell-off, Voyager still holds a substantial amount of crypto assets, with a total value of nearly $530 million. The majority of its holdings are in Ether, which is currently worth around $1,500 per coin, and Shiba Inu, a meme-inspired token that has gained a cult following among retail investors.

However, the fate of Voyager’s remaining assets is uncertain. The United States Securities and Exchange Commission (SEC) has raised concerns about the company’s financial stability and recently objected to Binance.US’ proposed acquisition of over $1 billion in assets belonging to Voyager.

The SEC argued that Binance.US, which is a subsidiary of the world’s largest cryptocurrency exchange, had failed to demonstrate that it could adequately safeguard the assets and protect the interests of Voyager’s creditors.

The move by Voyager to sell its assets through Coinbase has sparked speculation among industry analysts about the future of centralized finance and the role of crypto exchanges in providing liquidity for struggling platforms.

While the crypto market has seen a resurgence in investor interest and rising valuations for major tokens, such as Bitcoin and Ethereum, the fate of smaller players like Voyager remains uncertain. The company’s bankruptcy filing and subsequent asset sales highlight the risks and challenges of operating in the rapidly evolving and volatile world of cryptocurrency trading.

Source

Tagged : Assets / Bankruptcy / Coinbase / Cryptocurrency / News / Voyager Digital

Texas Objects to Binance.US and Voyager Digital Deal

by Blockchain NewsMarch 2, 2023

The State Securities Board and Department of Banking of Texas have filed an objection to the proposed deal between Binance.US and crypto lender Voyager Digital, which filed for bankruptcy in the US in December 2021. The objection, filed on February 24, cites “inadequate” disclosures in Binance.US’s terms of service and restructuring plan, including the failure to inform unsecured creditors that they may only receive a recovery rate of 24-26% under the plan, compared to the 51% they would receive under Chapter 7.

Binance.US had disclosed its agreement to purchase Voyager Digital’s assets for $1.022 billion in December, a move that was expected to significantly expand its presence in the US crypto market. However, the objection by the Texas regulatory bodies could pose a major obstacle to the deal.

The objection raises concerns that the proposed transaction may not be in the best interest of Voyager Digital’s creditors, who may receive significantly less than they would under the Chapter 7 process. In addition, the objection points out that the disclosures provided by Binance.US may not be sufficient to enable creditors to make an informed decision about whether to support the proposed deal.

Binance.US has not yet commented on the objection, but the company is likely to face additional regulatory hurdles in the US as it seeks to expand its operations. The objection by the Texas regulatory bodies highlights the challenges that crypto firms may face in navigating the complex and evolving regulatory landscape in the US, where different states may have different rules and requirements.

Overall, the objection by the Texas State Securities Board and Department of Banking to the Binance.US and Voyager Digital deal underscores the importance of thorough disclosures and transparency in the crypto industry. As regulators continue to scrutinize the sector, it will be important for companies to provide clear and comprehensive information to all stakeholders in order to build trust and confidence in the market.

Source

Tagged : Binance.Us. / Deal / News / OBJECTION / Texas / Voyager Digital

Genesis hires a bankruptcy avoidance specialist

by Blockchain NewsNovember 23, 2022

Recent reports say that Genesis Global Capital has hired a restructuring counsel to look into all of the possible outcomes, including but not limited to the possibility of filing for bankruptcy.

According to a report that was published by the New York Times on November 22, it is known that the company has recruited the investment banking firm Moelis & Company to investigate potential courses of action. However, people who are familiar with the situation have emphasized that no financial decisions have been made and that it is still possible for the company to avoid filing for bankruptcy.
It’s interesting to note that Moelis & Company was also one of the companies hired by Voyager Digital after the company temporarily halted withdrawals and deposits on July 1 in order to investigate “alternatives in terms of strategy.”
A few days later, Voyager Digital filed for bankruptcy under Chapter 11 with the Southern District of New York. This was part of a plan to restructure the company so that clients would get their money back.
But a Genesis spokeswoman said not too long ago that the company had no “imminent” plans to file for bankruptcy, even though a November 21 story from Bloomberg said otherwise.

“Genesis maintains a positive and productive dialogue with its creditors,” the representative said.
People say that Genesis is trying to get anywhere from $500 million to $1 billion from investors to fill a gap caused by “unprecedented market turmoil” and the failure of the cryptocurrency exchange FTX.
According to a report that was published by Bloomberg on November 22, the financially troubled lending company has outstanding loans totaling $2.8 billion on its balance sheet. Approximately thirty percent of the company’s lending has been done to “related parties,” which includes both its parent company, Digital Currency Group, and its affiliate and lending unit, Genesis Global Trading.
In a letter that has been going around lately, the CEO of Digital Currency Group, Barry Silbert, claims that the company owes Genesis Global Capital $575 million, and that payment is due in May 2023.
Since FTX’s exchange was shut down on November 11, all attention has been focused on Genesis, Grayscale Investments, and their parent business, Digital Currency Group. People are afraid that these companies could be the next exchanges to fail because of the spread.
Over the last week, all three corporations have made efforts to allay the concerns of their investors.
In a tweet sent out on November 17, Grayscale Investments aimed to reassure investors by stating that “the safety and security of the holdings underlying Grayscale digital asset products are unaffected.” The tweet was in reference to the withdrawal halt implemented by Genesis Global Trading, and it added that the company’s products are still functioning normally.
In the meantime, Digital Currency Group CEO Barry Silbert’s most recent letter to investors eased investors’ worries by telling them that the company is on track to make $800 million in sales in 2022.

Source

Tagged : DCG / Genesis / News / Voyager Digital

Bankrupt Crypto Lender Voyager’s CFO To Step Down Months After Appointment

by Blockchain NewsSeptember 24, 2022

Ashwin Prithipaul, the Chief Financial Officer of bankrupt crypto lender Voyager Digital Ltd, is expected to leave the company. The crypto firm said on Friday that the Finance Head would resign after a “transition period” to pursue other opportunities and that Chief Executive Officer Stephen Ehrlich will assume the role in the interim.

Prithipaul has served as CFO of the firm since May, according to his LinkedIn profile. In the past, he was the CFO at crypto exchange DriveDigital for nine months, and before that he was the CFO at crypto investment firm Galaxy Digital.

Voyager Digital collapsed due to its outstanding liquidity issues during the harsh winter period that started in May this year. As a result, the company filed for Chapter 11 bankruptcy in July to help contain the situation after suspending withdrawals on its platform.

The crypto winter triggered by the collapse of the algorithmic Terra and its ecosystem led to the crash of almost all the cryptocurrencies and threw the whole industry into crisis.

Many crypto-related firms struggled to keep their balance. Voyager became one of the highest-profile crypto companies to go out of business amid this year’s market crash. The firm filed for Chapter 11 bankruptcy in July with outstanding liabilities of as much as $10 billion.

The company’s downfall came shortly after one of its largest debtors, the Singapore-based crypto hedge fund Three Arrows Capital (3AC), filed for bankruptcy in July, leaving its user funds at risk. 3AC owed Voyager more than $650 million in the stablecoin USDC and Bitcoin.

Voyager initiated the process of selling off its assets through auction exercise at the beginning of this month. The auction for the New York-based firm’s assets started on September 13.

Crypto exchanges Binance and FTX have reportedly made the top bids of approximately $50 million each for Voyager’s assets. But Binance’s current bid is considered slightly higher than that offered by FTX. Other bidders reportedly include digital asset investment manager Wave Financial and digital currency trading platform CrossTower.

The announcement for the winning bid is expected on September 29, although it could come earlier before that date.

Image source: https://www.reuters.com/business/finance/bankrupt-crypto-lender-voyagers-cfo-exit-months-after-appointment-2022-09-23/

Source

Tagged : ASHWIN PRITHIPAUL / EXECUTIVE MOVE / News / Voyager Digital

Mark Cuban Slammed with Lawsuit for Endorsing Bankrupt Voyager Digital

by Blockchain NewsAugust 12, 2022

Days after going tough on metaverse real estate, Mark Cuban, the billionaire owner of the basketball team Dallas Mavericks, has been slammed with a class action lawsuit for his role in promoting the bankrupt crypto platform Voyager Digital.

The class action suit was filed by the Moskowitz Law Firm in the United States District Court in Southern Florida and is demanding that Cuban, alongside Voyager Digital’s CEO, Stephen Erlich, and Dallas Mavericks pay back those who have suffered losses through the platform whom it said its products were paraded as a Ponzi scheme.

The lawsuit alleges that the business model of Voyager Digital was hinged on frequent promotions from Mark Cuban.

“Cuban and Ehrlich, went to great lengths to use their experience as investors to dupe millions of Americans into investing—in many cases, their life savings—into the Deceptive Voyager Platform and purchasing Voyager Earn Program Accounts (‘EPAs’), which are unregistered securities,” the lawsuit alleges.

He is known as one of the first Wall Street veterans to embrace digital currencies, and he is particularly known as a lover of Bitcoin (BTC) and Dogecoin (DOGE), a tag he competes with Elon Musk for. He took his advocacy to Voyager Digital, and per the lawsuit;

“Voyager Platform relied on Cuban’s and the Dallas Maverick’s vocal support and Cuban’s monetary investment in order to continue to sustain itself until its implosion and Voyager’s subsequent bankruptcy.”

Voyager Digital declared bankruptcy after halting withdrawals on its platform, a situation highlighting its disrupted business opportunity with the inability of Three Arrows Capital (3AC) to pay as much as $670 million it owed the company.

Considering its current woes, it is unclear how well the company will fare with this new lawsuit. Still, it is very focused on bringing succour to some of its customers, which is now necessary since the firm’s representatives advised against accepting the offer from FTX and Alameda Research.

Image source: Shutterstock

Source

Tagged : 3Ac / Bankruptcy / Legal / Mark Cuban / Voyager Digital

Mark Cuban Slammed with Lawsuit for Shilling Voyager Digital

by Blockchain NewsAugust 12, 2022

The lawsuit alleges that the business model of Voyager Digital was hinged on frequent promotions from Mark Cuban.

Image source: Shutterstock

Source

Tagged : 3Ac / Bankruptcy / Legal / Mark Cuban / Voyager Digital

Voyager Digital Likely to Resume Withdrawal From August 11

by Blockchain NewsAugust 6, 2022

Earlier on Thursday, Judge Michael Wiles of the U.S. Bankruptcy Court in New York ruled in the favor of Voyager Digital, to receive access to the funds in its custodial wallets to return the $270 million to the affected customers.

Following the ruling, the bankrupt crypto lender has announced that customers with U.S dollars in their accounts can withdraw up to the tune of $100,000 in a 24-hour period.

This process will start exactly one week after the Judge’s ruling and that will be Thursday 11th August.

Although, this reimbursement scheme is highly dependent on if the payment from the Metropolitan Commercial Bank pulls through between 5-10 working days. Once the process is completed, the crypto broker will immediately resume access to in-app cash withdrawals.

Voyager Is Still Restructuring Amidst Bankruptcy

Voyager Digital Holdings suspended withdrawal, deposits, and many other trade offerings on its platform almost a month ago due to the heat of the harsh market condition. The lender’s alleged exposure to Three Arrows Capital (3AC), another troubled crypto lender which faced liquidation, was part of the problems Voyager encountered.

Eventually, Voyager applied for a Chapter 11 bankruptcy with the US Bankruptcy Court of the Southern District of New York.

The bankruptcy request was to allow the beleaguered crypto lender to put up a restructuring plan. Voyager planned to combine the $110 million in cash and owned crypto assets it had at hand with the funds in its For Benefit of customers (FBO) custodial account at Metropolitan Commercial Bank.

On the other hand, Shingo Lavine and his father, Adam Lavine ex-executives at Voyager, both had other plans. They proposed that the crypto lender suspends all its lending activities and instead resume live trades. Thereafter, issue a recovery token to customers to retain them on the platform.

From today’s news, it appears Voyager is keen on sticking to its initial restructuring plans.

While seeking means to settle its clients and investors, Voyager is also considering transferring its ownership in the future. Earlier, Voyager had filed a rejection letter in response to Alameda’s offer to buy out all of its digital assets including the outstanding loans.

Image source: Shutterstock

Source

Tagged : BANKRUPTCY CASE / Legal / Three Arrows Capital / Voyager Digital