The Texas State Securities Board (SSB) and the Texas Department of Banking (DOB) raised an objection in court against Voyager Digital’s disclosure statement, questioning the various methodologies and calculations used to estimate the fair market value of the bankrupt exchange’s crypto assets.
In a pleading filed with the United States Bankruptcy Court for the Southern District of New York, the attorneys for the SSB and DOB objected to the order approving the adequacy of Voyager’s amended disclosure statement. Voyager Digital filed for Chapter 11 bankruptcy in New York in July 2022, while proposing a recovery plan for investors.
The Texas state authorities argued that Voyager’s disclosure statement, which asserted that creditors might get a 70% return, fails to explain the methodology used to calculate the average coin prices, adding that:
“The Debtors (Voyager) have never been licensed by the SSB or the DOB and faces very large fines and penalties for operating without a license. FTX is also not licensed to do business in the State of Texas.”
The attorneys further highlighted that with the court that crypto exchange FTX offers a product similar to ‘Voyager Earn Program,’ a Voyager offering that has been subject to cease-and-desist orders from multiple states in the US.
As a resolution, the SSB and DOB seek the denial of Voyager’s disclosure statement in its current form. Moreover, it demands that Voyager discloses the methodology and calculations used to determine its fair market value for funds recovery.
On Oct. 5, FTX US secured the winning bid for the assets of Voyager. According to Voyager, the bid was made up of the fair market value of its crypto holdings “at a to-be-determined date in the future” estimated to be around $1.3 billion, along with $111 million in “incremental value.”
The hearing date for the case has been slated for Oct. 19 at the time of the writing.