Voyager Digital, a bankrupt cryptocurrency brokerage firm, has sold $100 million worth of crypto assets on Coinbase since Valentine’s day. The exchange involved the USDC stablecoin in exchange for Ethereum and other low market-cap altcoins, as shown by on-chain analyst Lookonchain’s data. Despite the sale, Voyager still holds over $600 million worth of assets, mostly Ether tokens.
However, the US Securities and Exchange Commission (SEC) has objected to Voyager’s already-approved sale of assets to cryptocurrency exchange Binance. The regulator alleges that some aspects of the asset restructuring proposal may violate securities regulations in the United States.
The sale to Binance.In Dec 2022, a bankruptcy court approved around $1.022 billion for the US, with up to $15 million covering Voyager’s expenses. However, the SEC contends that the disclosure agreement and plan did not adequately detail the security assets held on the Binance.US platform.
It also claims that the planned purchase did not include details about third-party access to customer wallets or control over anyone with such access. The commission also argued that the security measures to prevent assets from being transferred to the platform were not described.
The SEC I added that the disclosure statement failed to account for the potential impact of regulatory actions on Binance.US and its customers’ ability to trade cryptocurrencies on the platform.
The recent sale of crypto assets by Voyager has raised concerns about the transparency and security of crypto transactions. These worries have been further heightened by controversies surrounding Binance and its founder, Changpeng Zhao.
SEC Concerns Weigh on Voyager’s VGX Token
As the sale and objections have come to light, Voyager’s VGX token has experienced a decline in value. This suggests that the token is currently facing significant downward pressure in the market, with a potential bearish outlook. Investors and traders should know these trends when deciding about this asset.
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The Chaikin Money Flow (CMF) suggests that selling pressure significantly exceeded purchasing, returning a negative value of -0.45 at press time. The future of Voyager’s asset sale to Binance.US remains uncertain amidst SEC objections. The move highlights the importance of transparency and security in the crypto industry as regulators continue to monitor the market.
The author’s views are for reference only and shall not constitute any investment advice. Please ensure you fully understand and assess the products and associated risks before purchasing
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