Voyager Digital has expressed its discontent with the Securities and Exchange Commission’s allegation that its VGX token is a security and is trying to obtain court approval for Binance US’s offer to purchase the bankrupt crypto lender for $1.02 billion.
In a recent filing, Voyager expressed surprise at delays and changes in the regulator’s position on the subject and sought a prompt resolution, explaining that each month of waiting costs them approximately $10 million. The company also noted that they do not support the Commission statement on VGX, having received legal backing from an established law firm.
Mark Renzi, Voyager’s financial advisor, cites remarks by the Commission’s William Uptegrove, who first on Thursday declined to take a position on VGX’s status, and then on Friday told the court SEC staff to believe Binance US is running an illegal securities exchange because financial instruments should be registered with the regulator. The statement did not reflect the views of the commissioners, Uptegrove said.
SEC’s statement surprises Debtors
Renzi said this supplemental statement from the Commission counsel was a surprise to the Debtors. He added Voyager had given the regulator information on VGX on the topic around one and half years ago and hence might reasonably have considered the matter closed.
“The Debtors are burning more than $10 million a month. Until the deal is finalized, the debtors cannot responsibly delay any further to accommodate the SEC’s apparent evolving deliberative process.”
The filing added that a long legal process means fewer funds for creditor distributions. Binance US revealed their acquisition plans in December, but due to revelations from the Commission during recent hearings, CZ tweeted that he may withdraw. He quickly followed up with another tweet clarifying his support for the deal and commitment to help return funds to users as soon as possible, if allowed.
