Voyager Digital is a crypto lender recently in the news due to bankruptcy-related news.
According to on-chain data from Lookonchain, it appears that the company is selling its assets through the Coinbase exchange. This news has caused concern among investors, as it could have implications for the cryptocurrency market in general.
Summary
Analysis by Lookonchain says Voyager is selling crypto assets on Coinbase
Lookonchain, a leading provider of blockchain analytics, reported that Voyager Digital, which recently filed for bankruptcy, is selling some of its assets through Coinbase Exchange.
The news has caused tremors throughout the cryptocurrency world, raising questions about the lender’s financial health and potential impact on the broader market. While exact details of the sale remain unclear, experts believe it could have significant implications for both Voyager and the entire cryptocurrency industry.
According to Lookonchain, Voyager’s decision to sell assets through Coinbase Exchange is a clear sign of the lender’s financial difficulties.
The company filed for bankruptcy in the Southern District of New York in December 2022, citing a number of factors including the recent downturn in the cryptocurrency market and regulatory pressures.
Although the exact amount of assets sold through Coinbase is unknown, experts believe it could be a significant portion of Voyager’s holdings.
One of the challenges Voyager has faced is regulatory opposition to its planned acquisition by Binance.US, the US-based subsidiary of Binance.
The US Securities and Exchange Commission (SEC) and other financial regulators have expressed concern about the acquisition, citing potential risks to investor protection and market stability.
Regulators have also raised concerns about Voyager’s financial stability and transparency, which could affect the feasibility of the acquisition.
Concerns about Voyager selling off crypto
Despite these obstacles, Voyager has continued to sell off its digital assets in an effort to raise cash and pay creditors.
Lookonchain data show that in recent months the company has gradually moved its assets to various exchanges, including Binance.US and Coinbase. The data also suggest that Voyager may have sold a significant amount of assets through Coinbase in recent weeks, although it is unclear exactly how much was sold and at what price.
The news of Voyager’s sale of assets through Coinbase has raised questions about the company’s financial health and its ability to pay off debts.
Some analysts have expressed concern that Voyager may liquidate its assets at a discount to raise cash quickly, which could potentially hurt its long-term prospects.
Others have speculated that the company is selling its assets to prepare for a potential merger or acquisition, even though no concrete plans have been announced.
The objection of the SEC and the United States on the Voyager Digital acquisition
The US Securities and Exchange Commission (SEC) has objected to the proposed acquisition by Binance.US of more than $1 billion in assets belonging to Voyager Digital.
The SEC’s opposition is the latest development in a complex legal and financial saga that has been unfolding for several months and highlights the regulatory challenges facing the cryptocurrency industry as it continues to evolve and mature.
Last year, the company filed for bankruptcy in Canada, citing a number of factors including the COVID-19 pandemic, falling cryptocurrency prices, and operational challenges related to its expansion efforts. Since then, Voyager has been trying to sell its assets to pay creditors and settle debts.
One of the potential buyers of Voyager’s assets is Binance.US, a US-based subsidiary of the world’s largest cryptocurrency exchange.
In February this year, Binance.US announced that it had entered into a definitive agreement to acquire more than $1 billion of Voyager’s assets, including its digital asset custody business and a portfolio of more than 40 cryptocurrencies.
The acquisition was seen as a significant move for Binance.US as it sought to expand its presence in the US market.
However, the SEC has now raised objections to the acquisition, citing concerns about potential risks to investor protection and market stability.
In a letter sent to Binance.US earlier this month, the SEC said it had “serious concerns” about the acquisition and requested additional information from the company to assess its compliance with federal securities laws.
The SEC’s objections are based on a number of factors, including questions about the nature of the assets acquired, the regulatory status of Voyager’s business, and the potential impact of the acquisition on the cryptocurrency market as a whole.
The SEC also raised concerns about Binance.US’s ability to comply with US securities laws, given the complex and rapidly evolving nature of the cryptocurrency industry.
Blocking the Voyager Digital acquisition is just one of the SEC’s moves in the crypto sector
The SEC’s negativity regarding the Voyager acquisition is the latest in a series of regulatory challenges facing the cryptocurrency industry, particularly in the United States.
The sector has long been viewed with suspicion by regulators, who have expressed concern about potential risks to investors, market stability, and the potential for fraud and money laundering.
In recent years, the SEC has taken a more proactive approach to regulating the cryptocurrency industry, initiating a series of high-profile enforcement actions against companies and individuals involved in fraudulent or illegal activities.
The agency has also issued guidance and advice aimed at helping market participants understand their obligations under federal securities laws. Despite these efforts, however, the regulatory landscape of the cryptocurrency industry remains complex and uncertain.
Many companies and investors in the industry are still uncertain about how to comply with the federal securities laws and are struggling to navigate a rapidly changing regulatory landscape.
The SEC’s objections to the acquisition of Voyager’s assets by Binance.US highlight the challenges that companies in the cryptocurrency industry face as they seek to expand and grow their businesses.
To succeed in this rapidly evolving industry, companies will need to prioritize compliance with federal securities laws as well as transparency and openness to regulators and investors.
The cryptocurrency industry is still in the early stages of development, and it is likely that regulatory challenges will continue to arise as the industry matures and evolves.
However, with the right approach and mindset, companies in the industry can address these challenges and build sustainable and successful businesses, benefiting investors and contributing to the growth and development of the industry as a whole.
