Voyager Digital sells crypto assets on Coinbase, but here’s the catch

• Voyager is selling its crypto assets via Coinbase.
• VGX plummets as buyers continue to shun the alt. 

According to on-chain analyst Lookonchain, bankrupt crypto brokerage firm Voyager Digital has been selling its crypto assets via leading exchange Coinbase since 14 February. 

1/ It seems that #Voyager is selling assets through #Coinbase.

We noticed that #Voyager has received 100M $ USDC from #Coinbase in the past 3 days.

And #Voyager has sent assets to #Coinbase almost every day from Feb 14.https://t.co/VW8o8dBQtqhttps://t.co/qbHt0r7VNG pic.twitter.com/kfxF6rwHFk

— Lookonchain (@lookonchain) February 26, 2023

The data collected by Lookonchain revealed that Voyager received a whopping $100 million worth of USDC from Coinbase in the last three days.

Since the sale began on Valentine’s day, Voyager has transferred a wide range of crypto assets, from leading altcoin Ethereum [ETH] to other lower market cap alts. 

Read Voyager [VGX] price prediction 2023-2024

According to Lookonchain, despite the selloff, Voyager continues to hold crypto assets worth over $600 million, made up of mostly Ether tokens.

3/ And Voyager currently holds ~$631M assets.

Including:

– 172,223 $ETH($276M)
– 186M $USDC
– 6.5T $SHIB($81M)
– 2.14M $LINK($15.8M)
– 581,052 $AVAX($10.5M)
– 1.17B $STMX($8.3M)
– 11.9M $MANA($7.88M)
– 12M $FTM($5.6M)
– 1M $APE($5.1M)
… pic.twitter.com/PIl9zXJp8P

— Lookonchain (@lookonchain) February 26, 2023

SEC says no to the proposed asset sale to Binance

Amid the crypto asset sale, the U.S. Securities and Exchange Commission (SEC) has moved to block the already-approved sale of Voyager’s assets to cryptocurrency exchange Binance.

According to the regulator, the objection was filed because certain elements of the asset restructuring proposal may violate the securities regulations in the United States.

Voyager obtained approval from a bankruptcy court to sell its assets to Binance.US for approximately $1.022 billion. The American crypto exchange won the sale in December 2022, with Voyager’s expenses being covered by up to $15 million.

According to the court filing made by the SEC on 22 February opposing the proposed sale, the regulator alleged that the debtors’ disclosure agreement and plan did not provide sufficient information about the security assets held on the Binance.US platform. 

The Commission also argued that the planned purchase did not include details about whether third parties would have access to customer wallets or control over anyone with such access, nor did it describe the security measures in place to prevent the assets from being transferred to the platform.

Furthermore, the SEC said that the disclosure statement failed to account for the potential impact of regulatory actions on Binance.US and its customers’ ability to trade cryptocurrencies on the platform. 

This move has brought to light potential concerns about the transparency and security of crypto transactions, especially in light of recent controversies surrounding Binance and its founder Changpeng Zhao. 

Is your portfolio green? Check out the VGX Profit Calculator

Many are betting against VGX

At press time, VGX exchanged hands at $0.4339. According to CoinMarketCap, in the last week, the alt’s value has gone down by 14%.

An assessment of its performance on a daily chart revealed increased token sell-off since the beginning of February. As of this writing, key momentum indicators rested below their respective neutral lines.

VGX’s Relative Strength Index (RSI) was 42. Its Money Flow Index (MFI), also in a downtrend, was pegged at 43. 

With very little VGX accumulation ongoing, its Chaikin Money Flow (CMF) returned a negative value of -0.45 at press time. This suggested that selling pressure significantly exceeded purchase.