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Almeda Research and SEC oppose Binance’s plan to purchase Voyager’s assets

Almeda Research and SEC oppose Binances plan to purchase Voyagers

TL;DR Breakdown

  • The SEC and Alameda Research, formerly a creditor of Voyager, have publicly raised questions regarding the validity of the proposed agreement.
  • In a filing today, Voyager accused Alameda Research of  “hypocrisy” asserting how the firm swindled creditors and practically everyone else worldwide.

Voyager, a bankrupt digital lender, has labeled Alameda Research’s recent allegations concerning its bargain with Binance.US “baseless.” Last week, Alameda issued a scathing filing regarding the proposed $1 billion acquisition deal — claiming it disregards the necessary protocols of bankruptcy law.

Almeda research and Voyager lock horns

Voyager’s filing, today accused Alameda of “hypocrisy and chutzpah in the highest order,” asserting how the firm swindled creditors and practically everyone else worldwide. In December, Voyager announced that it had agreed with Binance.US and would sell its remaining assets for a total of $1.022 billion, including its crypto portfolio. The sale was reported as “the highest and best bid” to quickly provide customers with easy access to their funds.

Alameda’s bankruptcy filing relies on Section 1129(b) of the Bankruptcy Code, which states that junior-class creditors should not receive preferential treatment ahead of holders in senior classes who are due to get full value for their claims. Because the now-defunct trading company had previously provided financial aid to Voyager, this filing has labeled the acquisition as “patently unconfirmable” due to Bankruptcy Code disclosure requirements.

Alameda had extended Voyager a line of credit totaling nearly $377 million before the crypto market crash. In its recent statement, Voyager claimed they were only duped into entering this agreement because Alameda made fraudulent and false representations.

SEC questions the Binance-Voyager deal

Not only are Alameda’s citizens taking a closer look at the fumbled acquisition, but the federal authorities are also. Last week, the SEC questioned Binance’s capacity to effectively complete such a monumental deal in an official filing. The watchdog inquired whether there was enough information to ensure customer asset security and the debtor’s cryptocurrency portfolio rebalancing process.

Before the hearing concerning the case, the SEC called for a Disclosure Statement to be filed. The commission possesses the right to question or revise it if needed.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decision.

Damilola Lawrence

Damilola Lawrence

Damilola is a crypto enthusiast, content writer, and journalist. When he is not writing, he spends most of his time reading and keeping tabs on exciting projects in the blockchain space.

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