A Youtube researcher named Coffezilla has revealed that it may not be legal for crypto trading platform Voyager Digital to take advantage of Chapter 11.
Stephen Findeisen (Coffezilla) a youtube researcher named on 13 july In a video he posted, 6 July to the US courts on Chapter 11 of the restructuring laws applying to take advantage cryptocurrency exchange Voyager Digital of this move claimed it was illegal.
of companies their transparency and investigating online scams Stephen, a Youtuber, wrote that Voyager claimed he lied to his customers and shared the reasons.
According to Stephen’s claims, Guaranteed returns of up to 9% to 10% Voyager, which also low risk profile It states that it is an investment vehicle. Also, Stephen, Voyager, He stated that he could withstand long and severe bear markets. claims.
Investigative Youtuber reveals Voyager’s customers’ deposits $654 million a single fund to manage to Three Arrows Capital claims to have. According to Stephen, Three Arrows Capital made this money. Investing in Terra (LUNA) but LUNA’s with the collapse Along with this, the deposits are on the verge of extinction. Stephen at this stage that there is nothing illegal for a legitimate investment to go bad. however, he describes Voyager’s promotion of the fund as a low-risk investment vehicle as a move to mislead customers.
According to Stephen’s information, Voyager is a legitimate bank. Metropolitan Commercial Bank in partnership with FDIC (Federal Deposit Insurance Corporation) He also gave misleading information to his customers about deposit insurance.. Voyager reassured its customers by putting forward this insurance, but according to Youtuber’s claims, this insurance He was insuring the bank’s custody operations, not Voyager’s business moves..
Findeisen, Voyager bankruptcy exit plan also criticized the company’s plans for restructuring was to drive more coins and shares.
Youtuber, Voyager’s widely an advertised brokerage firm The company’s business is not as a stockbroker, commodity broker, clearing bank, or any other financial service provider. claims not to identify.
According to Youtuber, it’s why I don’t describe Voyager itself with any of the above definitions. these businesses were not allowed to benefit from chapter 11 restructuring laws but instead were liquidated under the Securities Investor Protection Act (SIPA). According to SIPA legislation investors are under special protection and in the liquidation scenario, they are in the group that gets paid first.. However, this is more of Voyager. that the coin minting scheme won’t work and Voyager’s activities stop means it will have to.
Finally, Stephen said that Voyager’s clientele within the legal framework. unsecured creditors claimed to be. In this context, all cryptos held within the Voyager exchange legally considered to belong to Voyager’s treasury. Also in Voyager’s first bankruptcy hearing pointing to this fact, the judge questioned whether Voyager had filed for bankruptcy properly..