State regulators strengthen control over Voyager
Securities regulators in Texas and Alabama have announced that they are continuing their investigations into Voyager following the release of new information.
"We assume that these firms did not fully disclose what they were doing with investors' money," Bloomberg said. Joe Rotonda, Director of Enforcement at the Texas Securities Board.
Government officials are checking whether Voyager has correctly disclosed essential information about its loans and the creditworthiness of borrowers.
Regulators in Texas, Alabama and New Jersey have launched investigations into the Voyager Digital Ltd. and Celsius Network Ltd. crypto exchanges after the firms froze customer withdrawals last month.
Voyager filed for Chapter 11 bankruptcy protection on Tuesday, causing the publicly traded company's shares to fall nearly 12%. On the next trading day, trading in shares on the Toronto Stock Exchange was halted after their price fell by 26% to $ 0.26.
Even a $500 million bailout from Sam Bankman-Fried's Alameda Research last month couldn't slow down the Voyager explosion. Voyager's bankruptcy filing revealed that Alameda Research owed Voyager $377 million.
According to Bloomberg, regulators also investigated the offers of profitable Voyager and Celsius products, including whether they were unregistered securities. Both crypto firms advertised exceptionally high profit margins, such as 12% and 17%, respectively.
Both companies still advertise these tariffs on their websites.
"We are investigating the activities of these companies and trying to find out what happened and why," she said Bloomberg Chief Deputy Director of the Alabama Securities Commission Amanda Senn .
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