Voyager Digital Ltd (OTCQX:VYGVF) is trading significantly lower Wednesday after the company received orders from members of a multistate working group of the North American Securities Administrators Association in regards to the Voyager customer accounts that permit customers to earn rewards on their crypto balances.
Voyager is aware of or has received cease and desist orders from the state securities divisions of Indiana, Kentucky, New Jersey and Oklahoma, and orders to show cause or similar orders from the state securities divisions of Alabama, Texas, Vermont and Washington.
The orders assert that Voyager was offering and selling securities or investment contracts in the form of Voyager Earn Accounts unregistered with the applicable state.
Voyager believes several statements in the orders are inaccurate and the company is in ongoing communications with the regulators.
"Voyager is firmly convinced that its Earn Program and the Voyager Earn Accounts are not securities and intends to demonstrate its position and defend it as necessary and appropriate."
Voyager operates as a crypto-asset broker that provides retail and institutional investors with a turnkey solution to trade crypto assets.
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VYGVF 52-Week Range: $5.34 - $30.20
The stock was down 14.5% at $5.73 at press time, according to data from Benzinga Pro.
Photo: mohamed_hassan from Pixabay.
