Voyager Digital Ltd. (TSX:VOYG) confirms it has received orders from certain state securities divisions that are members of a multistate working group of North American Securities Administrators Association (NASAA) in respect of the Voyager customer accounts that permit customers to earn rewards on their crypto balances (“Voyager Earn Accounts”).

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. These state orders generally assert that Voyager was offering and selling securities or investment contracts in the form of Voyager Earn Accounts unregistered with the applicable state.

Voyager says it is in ongoing communications with these state regulators to better understand the terms in their respective regulatory orders and to clarify certain statements in the orders that Voyager believes are inaccurate. If, as, and when effective, the orders will generally prohibit Voyager from offering new Voyager Earn Accounts or accepting additional assets into existing Voyager Earn Accounts in the impacted states.

If, as, and when effective, some of these orders will permit existing Voyager Earn Account customers to continue earning rewards on existing balances until Voyager has resolved such orders.

Three of these orders disclose civil penalties that the applicable state intends to seek upon resolution.

Voyager is seeking clarification of the terms of each of these regulatory orders, including effective dates and how proposed civil penalties in respect of alleged violations are calculated and its due process rights. It is Voyager’s expectation that most of these state orders will provide a transition period prior to becoming effective.

The company says:

“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. Of course, Voyager supports appropriate regulation and will do its best to demonstrate to these regulators that Voyager has complied with the law”.


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