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 Voyagerâs assets.
FTCâs Objection to Voyagerâs 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. âThe FTC has commenced an investigation into certain acts and practices of [Voyager] and [the] debtorsâ employees, directors, and officers, for their deceptive and unfair marketing of cryptocurrency to the public,â the complaint explains.
The FTC filing says the proposed sale of the debtorâs assets would interfere with the current probe, which could essentially discharge Voyager and specific staff members from alleged âfraud-related debts held by a governmental unit.â The FTC is not the only government agency investigating Voyager. Texasâs securities regulator and attorney general objected to FTX purchasing Voyager prior to FTXâs 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. Voyagerâs legal representation, Allyson Smith of Kirkland & Ellis, told the court the sale is âon trackâ to proceed. âWe are on track and donât anticipate any obstacles,â Voyagerâs lawyer stressed. However, the latest filing by the FTC insists that the debtors are ânot entitled to a discharge here.â
âFurther, 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,â the FTCâs objection concludes. âWherefore, for the foregoing reasons, the FTC respectfully requests the court deny confirmation of the debtorsâ proposed plan; strike Section VIII.B and D of the proposed plan; or grant any other relief the Court deems just and proper.â
What do you think about the Federal Trade Commission saying it is investigating Voyager Digitalâs marketing practices? Let us know what you think about this subject in the comments section below.