According to a court document filed recently in the Voyager Digital bankruptcy case, the US Federal Trade Commission (FTC) is investigating the crypto firm’s marketing. Like the US Securities and Exchange Commission (SEC), the FTC objected to Binance US buying Voyager assets.
FTC objection to proposed plan to sell Voyager could affect bankruptcy
In a bankruptcy filing filed February 22, 2023, the US Federal Trade Commission (FTC) detailed that it was investigating the marketing schemes of cryptocurrency firm Voyager Digital. “The FTC has launched an investigation into certain acts and practices [Voyager] And [the] employees, directors and officers of the debtors for misleading and unfair marketing of cryptocurrency to the public,” the complaint explains.
The FTC said in a statement that the proposed sale of the debtor’s assets would interfere with an ongoing investigation that could essentially exonerate Voyager and specific employees from alleged “fraud-related debts held by a government unit.” The FTC is not the only government agency investigating Voyager. The Texas Securities Regulator and Attorney General objected to the purchase of the FTX Voyager prior to the FTX crash.
The Securities and Exchange Commission (SEC) objected to the proposed acquisition of Binance US. Despite objections, Voyager received court approval for the sale. Voyager spokesperson Allison Smith of Kirkland & Ellis told the court that the sale was “going according to plan.” “We are on the right track and do not foresee any obstacles,” the Voyager lawyer emphasized. However, the latest FTC statement argues that debtors are “not eligible for indemnity here.”
“Furthermore, even if debtors were eligible for debt relief (for example, by voluntary release), the code specifically prohibits the write-off of fraud-related debt owned by a government unit,” concludes the FTC’s objection. “Therefore, for the above reasons, the FTC respectfully asks the court to refuse to validate the debtors’ proposed plan; delete Section VIII.B and D of the proposed plan; or provide any other relief that the Court may deem fair and proper.”
What do you think about the FTC saying it is investigating Voyager Digital’s marketing practices? Let us know what you think about it in the comments section below.
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Credit : news.bitcoin.com
