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Tuesday, January 31, 2023

Voyager Received An Order Of Cease And Desist By New Jersey

Voyager Digital was recently sent a desist cease order by the Bureau of Securities of New Jersey as they have been selling securities that are unregistered with the help of their Voyager Earn program. Voyager Digital is renowned crypto-based trading, lending, and fully centralized staking platform

The New Jersey Bureau Of Securities Is Giving Voyager A Hard Time

As per the order, all the accounts related to the lending and staking of cryptocurrency sanctioned by the program Voyager since the year 2019 have been not registered as their promised rate of interest is very high i.e. almost 12%. The Bureau as an example of their claim portrayed the message that is displayed on the homepage of the program which encourages people to expand their portfolio and start a new journey in the world of investment. 

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The tactics used in the marketing department of the program have also been criticized before and it was pointed out that they did not disclose the fact that the parent company of the program is known as Voyager Digital LLC and is a Canadian firm that is publicly traded and not a company from the U.S. Thus, the order rightly claims that misleading information is spread everywhere regarding the regulatory status of LLC. 

The Bureau also put allegation on Voyager that they are licensed only in a few states with just the status of ‘money services business’ which as per the Bureau cannot sell unregistered securities. Thus, such deceitful information attracts more investors who believe that they are licensed to sell or offer securities. 

Some states like Texas, Alabama, Vermont, Kentucky, and Oklahoma have issued similar orders against the company and asked for explanations from them. These cases are increasing day by day. BlockFi, another crypto platform, received a similar desist cease order from the state of Washington and a penalty of $100 million.

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