Thread by @VGX_Heroes

📣 We're back LIVE from the #Voyager confirmation hearing court room (Day 2). Will be providing updates in this thread as they are available. 📣

#Binance #FTX #Crypto #Bankruptcy

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INCYMI - Here's the thread from yesterday (Day 1).

https://twitter.com/VGX_Heroes/status/1631310089855303681?t=VmCbmQzDtEJFTFE91A6FmA&s=19

📣 #Binance has refused to provide a witness for today's hearing. Judge Wiles says, (paraphrase) "There's a whole host of objections that may have to rely on hearsay in the absence of a Binance witness". 📣

📣 Judge asks why can't customers in unsupported states just be cashed out if that's what they want. "Why are unsupported states not being given the same opportunities as supported states if they don't want to be a #Binance customer." 📣

📣 Mike Slade for the debtor questioning investment banker witness Brian Tischner. Tischner says, "There would be approximately $100mil in value if the Toggle plan were chosen over the #Binance plan." Explaining the details of why. (This involves the back end of withdrawals.) 📣

*in lost value

📣 Tischner says, "It would take 6-9 months and millions, perhaps 10's of millions to update the Bedrock code to support withdrawal of all listed coins. (Currently 35 unsupported coins.) Closing on the #Binance plan would likely take place within 3-4 weeks from confirmation. 📣

📣 Tischner explaining the due diligence involved with #Binance, and says they will continue to do more diligence. Mentioning the tweet from @cz_binance this morning stating "Should I pull out?" and then following up with CZ stating intention to move forward with the deal. 📣

📣 SEC rep now questioning Tischner on due diligence. Asking about technical specifics.

(Opinion): Tischner seems a bit stumped by some questions about #Binance financials, audits, etc.)

Mentions he's only 1 member of a larger team. SEC asking specifically who did reviews. 📣

📣 SEC questions if any 3rd party experts were involved. Tischner is only able to name @Ehrls15 as an advisor 😱. SEC asking Tischner to describe the detailed relationship between #Binance and #BinanceUS. Asks what did Moelis do to verify their findings. 📣

📣 SEC questions what Tischner means by a previous statement regarding the "unexpected" collapse of FTX. Citing the failed deal between #Voyager and #FTX. Trying to pry into diligence done in contrast between FTX & #Binance . 📣

📣 SEC asks why the court should allow confirmation if Moelis is still doing diligence into #Binance . Tischner says it is important to return assetsbas quickly as possible, and there is a backup plan included in the agreement. Also citing the costs incurred by delaying this. 📣

📣 Judge reminds the court that if this is not confirmed by 3/6/23 (Monday), #Binance has the right to remove their offer. 📣

📣 Judge calls for 10 minute recess at 11:56am. Now 12:24pm and still waiting... ⏱️🙄. 📣

📣 SEC asking questions issues around #CIFIUS. "What will happen to user migration if CIFIUS objects after the closing?"

Judge tells the #SEC, "You're taking up way too much time asking questions that don't pertain to any of the objections on the schedule." 📣

📣 SEC asks if Moelis will continue to monitor after closing. Posing a hypothetical hauling of trading and how Voyager would handle that. Response: "This will be a highly manual process and of course we would not send assets to a company undergoing a so called "bank run". 📣

*halting of

📣 Texas AG asks who would be liquidating the 35 unsupported coins in the event of Toggle. Tischner says, "That's currently unknown, but ultimately would be #Voyager, and not #Binance ." Goes on to explain details of Toggle and how it differs from Ch 7 liquidation. 📣

📣 Texas AG questions about due diligence. Tischner says they did receive audits for 2 years of #Binance financials, but the name of the company doing the audit, is confidential. 📣

📣 Texas AG asks how they verified the 1 - 1 holding of coins by Binance. Tischner explains they did not do proof of reserves, but did look over wallet amounts, and got multiple sworn statements with different verbiage to mitigate inconsistencies. 📣

📣 Pro-Se creditor D. Newsom asks Tischner to explain why the value of $VGX changes in comparison of Toggle vs Binance deal. Asks when will we know what #Binance intends to do with VGX. (That is unknown still.) 📣

📣 Pro-Se creditor T. Hendershott asks Tischner to explain the difference between the 50% slippage estimation vs $100mil value leakage in the event of the Toggle plan and they arrived at those numbers, as they contradict each other. 📣

📣 Pro-Se creditor T. Hendershott asks if Voyager has attempted to reach out to the Bedrock creators, @Ethos_io, for assistance with rebalancing in the event of Toggle. Tischner essentially says, "No, and that's not the main issue ."
Hendershott explains exactly why it *is*. 📣

📣 Pro-Se T. Hendershott questions Tischner about fee structure, and how much difference there is between payouts to lawyers in #Binance plan vs the Toggle option. At this time it appears the difference is $1mil, which appears to differ from previous numbers. 📣

📣 Court is now in recess for lunch. To resume at 2:45pm EST. 📣

📣 Judge asks for evidence of a sworn declaration from Binance, as he has not been provided one yet, and there are no witnesses from Binance present.

"A lot of this is hearsay, and quite odd to me." 📣

📣 Exact % will be unknown until disbursement. Confirms 73% is as of 2/27 if #FTX claim fails; 48% if FTX wins. HOWEVER, either way, $445mil will be witheld. Initial distributions will be in kind, then cash distribution for the remainder if FTX settles in favor of the estate. 📣

📣 What the above means regarding recovery: If market hypothetically stays the same until distribution, expect 48% back in kind. Then, depending on the #FTX claim, creditors would receive cash later if FTX fails, OR, nothing more than the initial 48% if FTX wins their claim. 📣

📣 Pro-Se creditor @GinaDiResta asking about information transfer and how it's not right to give KYC information for creditors opting out of Binance deal. Tischner cites the APA and #Binance wanting to market to customers. 📣

📣 Pro-Se creditor @GinaDiResta asks again about crypto security meetings. Wanting to know who exactly reviewed these reports from #Binance. Tischner again, mentions how that is not their expertise, and can once again only name @Ehrls15 as one of the "professional advisors". 📣

📣 McDermott now questioning Tischner.
(Basically going over things that have been covered already. Attempting to shine a positive light on the diligence done, and why the #Binance deal should be confirmed.) 📣

https://twitter.com/VGX_Heroes/status/1631767419717861378?t=tTA2CL_RCx3ufXqXG2uG5A&s=19

📣 US Trustee asks, "Based on your conversations with @BinanceUS this morning regarding @cz_binance's tweet about "pulling out", do you believe he actually has the power to do that, as a "separate entity"?

Tischner says, "I don't know." 📣

📣 Binance asks for a chambers conference with Debtors, SEC, and US Trustee. Says it is an evidentiary. UCC asks to be included. Judge wants to know why evidence can't be submitted publicly in the courtroom. Judge receives argument that it could be a security risk. 📣

📣 D. Azman UCC reminds Judge that creditors have been extremely vocal & frustrated about lack of transparency, & that an evidentiary chambers meeting is not going to help that case.
Judge agrees to the chamber, but says he will stop it if what's being said should be public. 📣

📣 Judge says chambers meeting was not evidentiary.
Binance agrees to relieve Debtor of their confidentiality regarding their sworn statements in question earlier.
Says SEC wanted to answer questions privately, but he will not allow that in a public court hearing. 📣

📣 Paul Hage (proposed plan administrator) says:
- Never met Raznick personally
- Participated in 30-40 committee meetings
- If conflict of interest arises, he will remove himself
- Takes fiduciary duties/ethics very seriously
- Raznick abstained from voting on DNO in 10/22. 📣

📣 Pro-Se creditor @GinaDiResta ripping the court (respectfully) about the conflict of interest between Hage, Raznick, SBF, Ehrlic, and McDermott. "This entire case has felt like the boys club passing the money around and scratching each other's backs." 📣

📣 Pro-Se creditor T. Hendersott voicing concerns, and questioning Hage on his thoughts & opinions about bankruptcy, clawbacks, releases, and focus points, as well as how he would handle those aspects, should he act as plan administrator for the wind down entity. 📣

📣 SEC staff "thinks" $VGX "might be a security".

M. Slade for the Debtor asks that the Judge leave evidence open in case they need to amend the APA.

Court has adjourned for today and will resume on Monday 3/6 at 10:00am EST. 📣