The bankrupt crypto lender Voyager Digital has transferred almost 1500 ETH to Coinbase. As per the findings shared by Etherscan, the firm also transferred an additional 250 billion SHIB tokens. However, the actual motive behind these transfers resulted in mass speculations and suspicions throughout the crypto space. Some analysts suggest a probable sell-off considering how the transfers have reduced the holdings of Voyager to $81.63 million in digital assets.
Etherscan reported that all of these transactions took place within a single hour. The abnormal movement of the tokens was quick to spark discussions regarding potential liquidation. Furthermore, several people in the crypto space say that the situation is nothing to worry about as Voyager is consolidating all tokens from various addresses into its primary address.
The speculation of a sell-off is also supported by the ongoing divestment of Shiba inu (SHIB) holdings by Voyager since the beginning of 2023. In February this year, the platform carried out transfers of digital assets worth $10 million to different crypto exchanges within a single day.
Not too long after the acquisition by Binance.US of the lender’s assets, Lookonchain disclosed that Voyager liquidated digital holdings that exceeded the $56 million mark across three crypto exchanges. Just three months following that, the insolvent exchange engaged in numerous transactions that involved the transfer of approximately 350 million SHIB tokens.
Legal Scholars File Amicus Brief to Support Coinbase Following Voyager Transfers
Following the transfers of digital assets by Voyager, a total of six legal scholars specializing in securities law and related fields have submitted an amicus brief in support of the platform amid its ongoing battle with the SEC. An amicus brief is a document that is used to add supporting arguments for a lawsuit and emphasizes how the case would have a broader impact beyond the involved parties.
On the same day, Senator Cynthia Lummis also submitted an amicus brief in support of Coinbase. In the filing, the legal scholars argue that according to established legal principles and the Howey test, whenever people invest their money into something, they expect to make money from it. This is important as it helps to determine whether rules regarding investments can apply to that situation. At the same time, the group has also asked the court to adhere to the established legal definition of the investment contract when interpreting its scope.