By George Ward
The bankrupt crypto lender Voyager Digital has explained its decision to sell its $1 billion asset to Binance US amid criticism from FTX. According to two legal documents, Voyager intended to sell its assets to the American arm of Binance, which Alameda Research, the sister company of the FTX crypto exchange, opposed.
A Slew Of Oppositions
Interestingly, the plan by Voyager to sell off its assets was opposed by Alameda Research, the US Securities and Exchange Commission (SEC), the Department of Justice (DoJ), and other regulators. However, Voyager did not take the criticism lightly after it released a statement debunking doubts about its move by the SEC and other regulators.
According to Voyager, the doubts expressed by other parties about whether Binance.US is capable of affording the deal are “misplaced.” Meanwhile, the court filing shows that the objections made by FTX, SEC, and other regulators are geared at undermining Binance.US’s transactional capabilities.
Furthermore, Alameda Research has also attempted to oppose the deal, citing its breaches of the hierarchies of creditors as outlined by the United States bankruptcy laws. Voyager vehemently opposed the move. Additionally, in its court filing, the embattled crypto lender termed the move “hypocrisy and insolence,” as it lacks the substance to bring against Binance.US and its ability to afford the deal.
It is worth noting that both FTX and Alameda Research attempted to bail out Voyager Digital before their eventual bankruptcy on November 11. Moreover, the filings indicate that Voyager has been part of the Alameda-FTX Loan Facility, based on a fraudulent premise designed by the firms to steal investors’ money.
It added that FTX also attempted to purchase Voyager in a last-minute effort to hide its bleeding balance sheet due to its “fraudulent activities.” Meanwhile, John Ray, the new FTX CEO, has complained about the perceived mismanagement of the exchange by its former owner, Sam Bankman-Fried.
The new boss also lamented the poor record-keeping of the former management. After his arrest in the Bahamas and his subsequent extradition to the United States, Bankman-Fried has pleaded not guilty to charges of wire fraud and money laundering leveled against him by the US and Bahamas authorities.
A Perceived Regulatory Hypocrisy
The Voyager court filings also take a dig at the “hypocritical” stance of the state regulators. According to the filings, the regulators opposed giving cash and crypto payouts to Vermont, Texas, New York, and Hawaii residents.
Voyager noted that the regulators objected on the ground that account holders within their jurisdictions would receive payouts in cash even though it is their regulatory decision to make. Speaking of the Binance.US deal, Voyager, with the support of its creditors, explained that the Binance agreement is the best given the scenario surrounding the sale of the assets.
The crypto lender added that the deal is the best option for those who own assets through their estate, given the volatile nature of the crypto market. However, Voyager added that should a better offer come up; it would reconsider the Binance.US deal.