Voyager calls FTX a “hypocrite” for objecting Binance Deal

Sahana Kiran
Source – Unsplash

2022 was the year of bankruptcy. Now while FTX failed, Binance.US was all set to purchase Voyager’s asset for $1 billion. However, opposition from the U.S. Securities and Exchange Commission [SEC], Department of Justice [DoJ], and FTX’s Alameda Research made the transaction rather difficult. Voyager did not like this objection.

In recent court filings, Voyager is condemning the backlash from the aforementioned entities. The firm labeled the objections “hypocrisy and chutzpah” based on speculations that are unverified. The filing read,

“Raising Disclosure Statement objections based on unsubstantiated and unverified media reports while ignoring the substantial information already made available to the Objectors is a naked attempt to undermine the Binance.US Transaction and attack Binance.US.”

The SEC and the DOJ weren’t the only financial regulators objecting to the deal. Financial authorities from New York, Texas, and Vermont were also against it. Concerns were raised regarding Binance.US’s to fund the acquisition by the SEC, as well as the U.S. Trustee, the DoJ’s bankruptcy section, and authorities from the above-mentioned states, which were “misplaced, according to Voyager.

The lawsuit also denounced the “hypocritical” approach of state regulators who rejected circumstances in which certain citizens of Vermont, New York, Texas, and Hawaii would get cash dividends while others would receive cryptocurrency.

FTX’s Alameda and its “frivolous” objections

While Voyager faces the wrath of regulators, FTX’s Alameda Research has also been giving the firm a hard time.

Voyager claims that Alameda’s protests “evince hypocrisy and chutzpah at its finest.” The bankrupt firm further labeled them “frivolous.”

The crypto exchange also addressed why it was part of the AlamedaFTX Loan Facility. It continued, stating that FTX’s own attempt to acquire Voyager was “a last-ditch effort” to cover the gaps in its own balance sheet which was caused by their “apparent fraud.” Voyager “only entered into the AlamedaFTX Loan Facility based on AlamedaFTX’s fraudulent and false statements,” the firm added.

It should be noted that a hearing is due to be held at the New York bankruptcy court tomorrow.