Voyager Digital Denies SEC Allegation That VGX Token Is a Security

03/06/2023 15:27 • Tech Ticker • 123 views

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.

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

Interpret the above information:

Voyager Digital, a company that provides a platform for buying and selling cryptocurrency, has denied the Securities and Exchange Commission (SEC)’s allegation that its native token VGX belongs to securities. This latest development was contained in court documents submitted by Voyager Digital in light of its ongoing lawsuit with the SEC.

VGX is a token that powers Voyager Digital’s blockchain-like platform. Holders of the VGX token are entitled to various benefits, including reduced fees on trading and access to higher yield interest accounts. However, the SEC alleges that VGX is a security and therefore must be registered under securities laws.

Voyager Digital’s defense against the SEC’s allegations is centered on the fact that the VGX token is not an investment contract and thus should not be considered a security. The company argues that VGX is a utility token, similar to other tokens used on various blockchain-like platforms.

Voyager’s digital lawyer argues that VGX is used as a means of access and benefits on their platform, and that the tokens are not being offered as an investment opportunity. The company cited numerous cases where courts have deemed similar tokens as utility tokens rather than securities. These cases’ arguments revolve around the fact that these tokens have a use beyond investment or holding value.

However, this development is coming at a time when Voyager is grappling with the delay of its transaction with Binance US, which is caused by the ongoing SEC lawsuit. According to Voyager, this delay is costing the company around $10 million every month.

In conclusion, the lawsuit between Voyager Digital and the SEC has far-reaching implications for the cryptocurrency industry. The outcome of the lawsuit will determine whether regulators will treat utility tokens like VGX as securities. If the SEC’s allegations are upheld, it will further establish their regulatory purview over the cryptocurrency space. Regardless, this ongoing dispute highlights the difficulty regulators have in defining emerging technology in a rapidly-evolving digital space.

This article and pictures are from the Internet and do not represent SipPop's position. If you infringe, please contact us to delete:https://www.sippop.com/9726.htm

It is strongly recommended that you study, review, analyze and verify the content independently, use the relevant data and content carefully, and bear all risks arising therefrom.