Voyager Digital’s Bankruptcy Saga
The ongoing saga of Voyager Digital’s bankruptcy is one for the books—talk about a rollercoaster of legal proceedings. On March 6, bankruptcy judge Michael Wiles made a pivotal decision that essentially sent the SEC packing with a pink slip. Wiles stated that executives involved in Voyager’s bankruptcy restructuring plan can’t be fined by the SEC if they plan to issue bankruptcy tokens aimed at repaying their customers. Yes, you heard that right—no SEC sword hanging over their heads!
The SEC’s Dilemma
Now, here’s where it gets juicy. The SEC has been spitting fire, arguing that the proposed repayment tokens qualify as unregistered securities. They believe that Binance.US, which is set to acquire Voyager’s assets for a cool $1 billion, is operating an unregulated securities exchange—and they’re not happy about it. The SEC even tossed a fit about a legal protection clause that would prevent them from chasing after Voyager executives. Talk about feeling like the kid who got their favorite toy taken away.
Courtroom Drama
Wiles’ response to the SEC was like a mic drop moment. He questioned how any bankruptcy case could run smoothly if the SEC had the power to enforce claims at any time. The judge didn’t want to run a courtroom under a constant cloud of threat. Despite SEC lawyer Therese Scheuer’s protests, claiming the protections could allow Voyager employees to frolic through securities law violations, Wiles stuck to his guns. Voyager’s lawyers even softened the legal releases after some back-and-forth, suggesting they’re open to compromise but still want to protect their upper management.
The Path to Restructuring
Voyager filed for bankruptcy on July 5, aiming to restructure and bring value back to roughly 100,000 customers. A restructuring plan was first unveiled back in December, and if everything goes according to plan, Binance.US will scoop up Voyager’s assets for $1.02 billion—a deal that Voyager called “the highest and best bid.” Seems like the fat lady has yet to sing, especially with the SEC still trying to cut in on the action.
Positive Vibes from Account Holders
Despite the SEC’s grumbling and the back-and-forth legal tussles, the mood amongst Voyager’s account holders has been surprisingly upbeat. A stunning 97% of 61,300 account holders expressed their support for the Binance.US restructuring plan, a sign that many are itching for some financial peace after all the chaos. With such overwhelming support, one must wonder—could we see a light at the end of this tumultuous tunnel?
