Voyager: VGX is not classified as a security, and the delayed transaction with Binance US resulted in a monthly loss of US $10 million

It is reported that according to the latest court documents submitted by the encryption lender Voyager Digital, Voyager denied the SEC’s allegation that “its native Token VGX belongs to securities”, and said that the delay in the transaction with Binance US due to the event would cause Voyager to lose about US $10 million per month.

Interpretation of this information:

The latest court filings from Voyager Digital reveal that the company is denying the Securities and Exchange Commission’s (SEC) allegation that its token VGX represents securities. This comes as good news for the cryptocurrency lender, which has been facing regulatory challenges in the United States. The SEC has been clamping down on cryptocurrencies that it believes may be operating in violation of securities laws. However, Voyager has contested that its native token is not a security and is merely a “loyalty program” for its customers.

Voyager’s legal troubles began when it announced that it would be acquiring LGO, a French cryptocurrency exchange, in order to expand its services in Europe. The SEC then alleged that Voyager had violated securities laws by failing to register its offer and sale of VGX, which it had offered in exchange for LGO tokens. Voyager, however, claims that it had merely offered a swap to its customers and that no money had changed hands.

The company has also cited the SEC’s lack of clear guidelines on cryptocurrencies as being a factor in the confusion around VGX. Since cryptocurrencies are not yet fully understood by regulators, it remains difficult to classify them as securities or commodities.

These legal challenges, however, have come at a high cost to Voyager. The company claims that its delayed transaction with Binance US, a popular cryptocurrency exchange, would cost it $10 million per month – a staggering amount for any business. While Voyager has denied that VGX is a security, it appears to be losing out on crucial business deals due to the regulatory uncertainty surrounding the classification of cryptocurrencies.

In conclusion, Voyager Digital’s latest court filings indicate that the company is taking a firm stance against the SEC’s allegations that its token VGX is a security. However, the ongoing regulatory uncertainty has cost the company dearly, with critical business deals being delayed and potentially amounting to losses of $10 million per month.