Alabama Securities Commission official says Voyager Digital’s “Earn Program” maybe unregistered securities

Voyager Digital is now finally on the radar of a total of seven Securities regulators of the United States. These securities bodies may take action for its earn program. 

The year 2021 was a disappointing phase for those crypto companies, which were providing crypto lending and loan services because the majority of them saw some legal action from the multiple Watchdogs of the US. In particular, BlockFi & Celsius were at the number one position on the radar of securities bodies. 

On 30 March, Coindesk reported that around 7 states’ Securities regulatory bodies are coordinating to take legal action against “Voyager Digital” for its “Earning program”. 

According to the watchdogs of New Jersey, Alabama, Oklahoma, Texas, Kentucky, Vermont, and Washington, the “Earning Program” of Voyager Digital is under securities law, which is unregistered with the agency. 

In a conversation with Coindesk, Joseph Borg, Director of the Alabama Securities Commission, said that securities bodies of New Jersey, Alabama, Oklahoma, Texas, Kentucky, Vermont, and Washington will file legal action separately, which may result in the cease and desist of its offerings.

“(Earn Program) accounts may be unregistered securities. They coordinated to file separate legal actions against the publicly traded firm.”

Case more similar to BlockFi 

A similar kind of legal action was taken against BlockFi in July of last year. Later the matter was settled in February of this year. And under the settlement, a $100 million fine was imposed on BlockFi and also BlockFi was ordered to register products under securities law. 

However, the Alabama Securities Commission director said that there are some basic principle differences between the Voyager Digital and BlockFi case but are almost the same. 

Borg also noted that it was surprising to know that Voyager Digital and similar platforms still didn’t received such messages as BlockFi. This was a clear indication that legal action will take place against almost every crypto company, which is offering services like lending platforms Celsius, BlockFi.

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