Thread by @VGX_Heroes

🗽 Good morning everyone! We'll be getting started here shortly with Day 3 of the @investvoyager / @BinanceUS confirmation hearing.
Have a feeling it'll be another long day, but will provide updates as best as possible in the thread below as they unfold. 🗽
#Voyager #Binance #FTX

In case you missed Day 2, that thread can be found here:

https://twitter.com/VGX_Heroes/status/1631672342983110656?t=tjp7HSZck22KRkhl2YZzOw&s=19

And here's the thread from Day 1 for reference as well:

https://twitter.com/VGX_Heroes/status/1631310089855303681?t=tjp7HSZck22KRkhl2YZzOw&s=19

🗽 Binance rep: Customers option to cash out after 3 months, but will not segreate customer data. Says there's "value" in data.
Judge says, "Just because you can do something doesn't mean you should. People have rights to their data. Why do you need bank accounts & SSN's?" 🗽

🗽 M. Slade for mentions order filed on Friday. Judge stops him mid sentence to discuss the language of the order. "What if SEC says #Binance is unregistered securities broker after plan is confirmed?"
Slade says, "We just want to approve the plan to get crypto to creditors." 🗽

🗽 Judge slamming SEC again. "We can start the litigation today so that you "have" to prove your agencies' position. Are you seriously telling me that you haven't provided any clarity, and want me to deny this plan because it *might* be something you *think* is something?" 🗽

🗽 Judge says, "Nobody has come forward with evidence to litigate whether or not anything in the current plan is actually illegal. For anybody to suggest what I order by law to carry out, be denied without evidence, is not going to happen. " 🗽

🗽 SEC trying to say that the "rebalancing" of $VGX is illegal. Judge says the "distribution" by #Binance is *not* because it is part of a distribution of a claim on the debtor. 🗽

🗽 Judge will allow SEC to make a submission by no later than tomorrow morning 3/7.
(More argument about $VGX to come)

Taking a 10 minute recess for debtor to discuss this. 🗽

🗽 Debtor says is SEC can provile that this has happened in a previous case and why it is illegal in rebalancing, they will remove the 1145 provision for $VGX. Going to proceed today with argument for the plan with the assumption that 1145 provision will be removed. 🗽

🗽 Okike for the Debtor now presenting arguments *for* the plan approval.
(Repeat information from previous days. Example: #Binance has the wherewithal to consumate the transaction. We've done due diligence. Etc.) 🗽

🗽 SEC bringing up that nobody from #Binance has testified to confirm Debtors remarks about crypto safety are true.
Cites Tischner's testimony that, "They are not crypto experts and they did not hire any experts to assist with their diligence."
Judge does not agree with SEC.🗽

🗽The past 15-20 minutes has just been a flat out dunk-fest on the SEC.
WOW!

Judge says, "Did you mention any of this publicly before Friday? You yourself just said you don't know! Is the debtor supposed to read the SEC's mind?" 🗽

🗽 #Binance rep breaks down the math on the $ amount per claim per vote. Proves that in regarding percentage, and in dollar amount, the creditor base voted in overwhelming support of the plan.

Now, UCC expressing further support for the plan. 🗽

🗽 Pro-Se creditor T. Hendershott speaks out for creditors. Says, "Every objection by the DOJ, is supported by creditors. Documented information in support of that was withheld from the Judge." 🗽

🗽 Texas AG raising concerns now against #Binance, citing that they have no evidence that Binance will not end up in a liquidation themselves after confirmation of the plan. Judge says... we also don't have any evidence that they will. 🗽

🗽 #Binance rep cites resolution with Vermont (previously unsupported state) that has already occurred, and that they are continuing to try to work with Texas on providing the information they are requesting. 🗽

🗽 Pro-Se creditor @GinaDiResta on security of information. "It says nowhere that employees at Binance do not have access to customer information/crypto at BinanceUS."
Binance rep says personal data held in US; crypto is held in US & Japan."
Judge is prying deeper into this. 🗽

🗽 Court in recess for lunch until 1:40pm EST. 🗽

🗽 Okike for debtor going over unfair discrimination arguments. Judge asks what deal was reached with Vermont, and why was that not good enough for the other states?

Seems Hawaii is likely to sign on to same deal.
No response from New York.
Texas is wanting a better solution. 🗽

🗽 New York rep now discussing unfair discrimination. Contracting himself quite a bit. Tough to keep up with the back and forth with the Judge. NY says residents should be cashed out in 3 months even if they don't want to be because that would be quickest. 🗽

🗽 Vermont deal is a "limited licensure account", where residents would be able to trade, but not stake, among other things. NY says that could be a possible negotiation for them. Judge says the Debtor's proposal as is, sounds like a better option for NY residents. 🗽

🗽 Texas rep says they are happy to see that residents may be able to get cashed out at 3 months. Agrees that Vermont deal is good, but Texas is looking for something along the lines of a "withdrawal only" account. They would be happy to discuss that option. 🗽

🗽 Pro-Se creditor D. Newsom on unequal treatment of $VGX. Says, "What I bought will no longer be what it was described as when I bought it. VGX may have no value after consummation of the plan if smart contract is not sold. VGX holders would be discriminated unfairly." 🗽

🗽 Debtors, Judge, and Pro-Se creditor D. Newsom now deliberating on how to handle $VGX distribution and ensure creditors holding #VGX, are treated equally to all other assets held by creditors. 🗽

🗽 Pro-Se creditor D. Newsom asks, "Would the lawyers and employees like to receive their salary in $VGX based on the current outlook right now? I think not. The sale of the smart contract to a 3rd party is illusory and not guaranteed." 🗽

🗽 D. Newsom says, "Release data is too broad. Special committee admitted there were avenues left out in their research. Additionally, the releases are not even necessary to effectuate the transactions in the plan."

G. DiResta says, "Release verbiage was deceptive." 🗽

🗽 If heard correctly (still tough to keep pace with what's being said), Judge says there is no evidence for why he should approve the releases as they are written.
After that, there's an audible yet silent tension in the room as the Debtors ask for a moment for counsel.🗽

😲

🗽 Q. Emmanuel for the Debtor tries to explain what they've done in terms of research. Says nobody on the committee is getting released from preference claims. Goes on in more detail about research, and how certain actions by the Debtor does not create cause of action. 🗽

🗽Judge asks why do you need to give them these releases if you found nothing wrong? Says he's never seen a release like this. Asks Q. Emmanuel if they intentionally made this as broad as possible so anything that anything they've ever done is released? That doesn't make sense.🗽

🗽 Judge now states he is inclined to approve the release after hearing evidence from Q. Emmanuel, although mentions he knows this would be a disappointment to many of the creditors.

US Trustee voices concern with the release language as well.

Discussion continues. 🗽

🗽 Discussion on releases is still publicly ongoing between all parties.

It's an immense amount of information with overwhelming specifics.

Apologies for not posting every detail at the moment. This will most likely be something needing a recap when it's available . 🗽

🗽 No decision on releases yet. Discussion moved to confirmation, equity holders having a near impossible battle, and D. Azman from UCC vouching that creditors will come first. Pro-Se creditors objecting to P. Hage for Wind Down. "This is not the time for on the job training." 🗽

🗽 Pro-Se creditor brings up previous ruling on a fee examiner. Judge confirms there will be one. US Trustee confirms they have proposed candidates for that process, but have not had response from debtor so no conclusive ruling on how that will proceed yet. Judge is cautious.🗽

🗽 Late in the day, things are running out of steam. Judge says court will adjourn for today, and resume at 2:00pm EST tomorrow, 3/7. This will give time for him to go over everything presented, and deliver his rulings after any final adjustments or questions. 🗽