Regulatory Disputes Halt Voyager’s Bankruptcy Process

03/07/2023 17:18 • Metaverse & Beyond • 80 views

It is reported that the bankruptcy process of Voyager, the cryptocurrency exchange, was blocked because the regulators had disputes over the cryptocurrency regulatory rules; Lawyers from the United States Securities and Exchange Commission (SEC) are filing a protest against the bankruptcy plan proposed by Voyager, while the presiding judge of Voyager case won’t let the SEC impose a fine on its cryptocurrency consulting business due to the bankruptcy event.

SEC lawyers are challenging Voyager’s proposed bankruptcy plan

Interpretation of the news:

The bankruptcy process of Voyager, a cryptocurrency exchange, has been halted due to regulatory disputes over cryptocurrency regulatory rules. The United States Securities and Exchange Commission (SEC) lawyers have filed a protest against the bankruptcy plan proposed by Voyager. However, the presiding judge of Voyager’s case has refused the SEC’s request to impose a fine on its cryptocurrency consulting business due to the bankruptcy event.

Voyager’s bankruptcy case is unique as it involves disputes over the regulatory measures being upheld for cryptocurrency exchanges in the U.S. According to reports, Voyager proposes to exit its bankruptcy proceedings by converting the debts of its creditors into equity in a new company that will be named Voyager Digital Holdings. The creditors will own around 92% of the company while the other 8% will be owned by Voyager shareholders.

The SEC is concerned about the cryptocurrency regulatory rules that Voyager and other cryptocurrency exchanges have to abide by. The organization has opposed the bankruptcy plan as they believe it does not provide enough assurance that regulatory rules will be complied with. The SEC aims to ensure that the transition of the ownership of assets from the old Voyager company to the new one does not result in any further regulatory breaches.

Moreover, the presiding judge handling the case rejected the SEC’s request to impose a fine on Voyager’s cryptocurrency consulting business. The judge based their decision on the fact that this would further complicate Voyager’s bankruptcy process. The SEC was not pleased with the decision and filed a formal protest against the bankruptcy plan that was being proposed by Voyager.

In conclusion, regulatory disputes can hamper the proceedings of a bankruptcy process, even if the company in question is a cryptocurrency exchange. Voyager’s case shows how the SEC and the presiding judge has different opinions on how to handle the issue. Eventually, Voyager’s bankruptcy process will continue with a new proposed plan, but it’s not easy to say whether the SEC’s concerns have been sufficiently addressed.

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Regulatory Disputes Halt Voyager’s Bankruptcy Process

SEC lawyers are challenging Voyager’s proposed bankruptcy plan

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