According to a recently filed court document in the Voyager Digital bankruptcy case, the US Federal Trade Commission (FTC) is investigating the trading of the crypto company. Like the US Securities and Exchange Commission (SEC), the FTC has opposed Binance US buying Voyager’s assets.
FTC objection to proposed Voyager sale plan could affect bankruptcy
In a bankruptcy court filing filed on February 22, 2023, the US Federal Trade Commission (FTC) detailed that it is investigating the trading schemes of crypto company Voyager Digital. “The FTC has launched 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 investigation, which could essentially clear Voyager and specific staff members of alleged “fraud-related debts held by a government unit.” The FTC isn’t the only government agency investigating Voyager. The securities regulator and the Texas attorney general opposed FTX buying Voyager before FTX’s collapse.
The Securities and Exchange Commission (SEC) opposed the proposed acquisition by Binance US. Despite the objection, Voyager received court approval to proceed with the sale. Voyager’s legal representative, Allyson Smith of Kirkland & Ellis, told the court that the sale is “on track” to proceed. “We are on the right track and we do not anticipate any obstacles,” stressed Voyager’s lawyer. However, the latest FTC filing insists that debtors are “not entitled to a discharge here.”
“Furthermore, even if debtors were entitled to a discharge (through the operation of consensual releases, for example), the code specifically prohibits the discharge of fraud-related debts held by a government unit,” the objection concludes. the FTC. “Therefore, for the above reasons, the FTC respectfully requests that the court deny confirmation of the debtors’ proposed plan; delete Section VIII.B and D of the proposed plan; or award any other relief that the Tribunal deems just and appropriate.”
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 topic in the comments section below.
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