US Federal Trade Commission Investigates Marketing Schemes of Crypto Firm Voyager
According to a court document filed recently in the Voyager Digital bankruptcy case, the U.S. Federal Trade Commission (FTC) is investigating the marketing of the crypto firm. Like the U.S. Securities and Exchange Commission (SEC), the FTC has objected to Binance US purchasing Voyager’s assets. FTC’s Objection to Voyager’s Proposed Sale Plan Could Impact Bankruptcy
In a filing in bankruptcy court registered on Feb. 22, 2023, the U.S. Federal Trade Commission (FTC) detailed that it is investigating the marketing schemes of the crypto firm Voyager Digital. “The FTC has commenced an investigation into certain acts and practices of [Voyager] and [the] debtors’ employees, directors, and officers, for their deceptive and unfair marketing of cryptocurrency to the public,” the complaint explains.
The FTC filing says the proposed sale of the debtor’s assets would interfere with the current probe, which could essentially discharge Voyager and specific staff members from alleged “fraud-related debts held by a governmental unit.” The FTC is not the only government agency investigating Voyager. Texas’s securities regulator and attorney general objected to FTX purchasing Voyager prior to FTX’s collapse.
The Securities and Exchange Commission (SEC) objected to the proposed acquisition by Binance US. Despite the objection, Voyager received court approval to proceed with the sale. Voyager’s legal representation, Allyson Smith of Kirkland & Ellis, told the court the sale is “on track” to proceed. “We are on track and don’t anticipate any obstacles,” Voyager’s lawyer stressed. However, the latest filing by the FTC insists that the debtors are “not entitled to a discharge here.”
“Further, even if debtors were entitled to a discharge (through operation of consensual releases, for example), the code specifically precludes the discharge of fraud-related debts held by a governmental unit,” the FTC’s objection concludes. “Wherefore, for the foregoing reasons, the FTC respectfully requests the court deny confirmation of the debtors’ proposed plan; strike Section VIII.B and D of the proposed plan; or grant any other relief the Court deems just and proper.” Tags in this story Attorney General, Bankruptcy, Binance.us, Code, confirmation, consensual releases, Court, Cryptocurrency, Cryptocurrency regulation, deceptive, discharge, fraud-related debts, ftc, ftx, governmental unit, Investigation, Kirkland & Ellis, legal representation, marketing schemes, objection, proposed plan, Relief, sale, SEC, Staff Members, Texas securities regulator, US Federal Trade Commission, Voyager bankruptcy, Voyager Digital
What do you think about the Federal Trade Commission saying it is investigating Voyager Digital’s marketing practices? Let us know what you think about this subject in the comments section below. Jamie Redman
Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today. Federal Judge Rules NBA Top Shot NFTs May Be Considered Unregistered Securities NEWS | 2 mins ago Luxor Technologies Acquires Ordinalhub to Provide Tools for Bitcoin-Based NFTs NEWS | 2 hours ago
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