The investigations of regulatory authorities on altcoin projects that started with Ripple are also turning to different projects. Securities regulators in Texas and Alabama are sending their research to Voyager Digital Ltd. to evaluate new information from the explosions of two altcoin projects. and expanding to Celsius Network Ltd.
It’s not over with Ripple: Two states are investigating two altcoin projects!
Ripple is setting an example because of the lawsuit with the SEC in the crypto market. Now, securities regulators in Texas and Alabama are investigating Voyager and Celsius. They announced today that they are expanding their investigation into Voyager after new information emerged after the stock market crash.
The two states are examining whether Voyager properly disclosed important information about its loans and borrowers’ creditworthiness. Texas and Alabama are among a coalition of U.S. states investigating Voyager and Celsius, according to Joe Rotunda, executive director of the Texas State Securities Board, and Amanda Senn, CEO. Joe Rotunda, executive director of the Texas State Securities Board, told Bloomberg:
What we’re seeing right now is that many of these crypto lending companies may not have disclosed what they’re doing behind the scenes with investors’ money. Moreover, it does not fully reveal the risks associated with such lending practices or even other types of transactions.
Bloomberg reported that government officials are examining whether Voyager properly disclosed material information about its loans and borrowers’ creditworthiness.
They’re researching yield-product offerings on Voyager and Celsius
Voyager and Celsius crypto exchanges froze customer withdrawals last month. After that, regulators in Texas, Alabama and New Jersey launched investigations against the companies. On Tuesday, Voyager filed for Chapter 11 bankruptcy protection. This caused shares of the publicly traded company to drop by about 12%. The stock’s price on the Toronto Stock Exchange fell 26% the following trading day. Later, the price was closed after falling to $0.26. The Voyager official made the following statement:
Voyagers began a voluntary financial restructuring process today to preserve assets on the platform, maximize value for all stakeholders, primarily customers, and emerge as a stronger company. Voyager will continue to operate throughout the operation.
cryptocoin.comAs you follow in Sam Bankman-Fried’s FTX backed up to save Alameda Research. However, even last month’s $500 million bailout couldn’t slow Voyager’s eruption. Voyager’s filing for bankruptcy revealed that Alameda Research owed $377 million to Voyager.
According to Bloomberg, regulators are also examining whether there are unregistered securities, as in the case of Ripple. They’re also researching return-product offerings on Voyager and Celsius. Both crypto firms have announced extraordinarily high returns of 12% and 17%, respectively. Both companies continue to promote these rates on their websites. Amanda Senn, vice president of the Alabama Securities Commission, commented:
We are researching these companies and trying to understand what happened and why. We are investigating. We are still in the beginning stages. But we have a responsibility on behalf of our investors in our states.
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