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According to a court document recently filed in the Voyager Digital bankruptcy case, the US Federal Trade Commission (FTC) is investigating the marketing of the crypto firm. Like the US Securities and Exchange Commission (SEC), the FTC has objected to Binance US acquiring Voyager’s assets.
In a bankruptcy court filing recorded on February 22, 2023, the US Federal Trade Commission (FTC) detailed that it is investigating the marketing arrangements of crypto firm Voyager Digital. “The FTC has initiated an investigation into certain actions and practices [Voyager] and [the] 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 exonerate Voyager and specific employees from alleged “fraud-related debts held by a governmental entity.” The FTC is not the only government agency investigating Voyager. Texas’ securities regulator and attorney general objected to FTX’s acquisition of Voyager before FTX’s collapse.
The Securities and Exchange Commission (SEC) objected to the proposed acquisition of 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 that the sale is “on track” to proceed. “We are on schedule and do not expect any obstacles,” Voyager’s lawyer emphasized. However, the latest FTC filing insists that debtors “are not entitled to relief here.”
“Further, even if obligors were eligible for discharge (such as through the use of consensual discharges), the Code specifically precludes the discharge of fraud-related debts held by a governmental entity,” the FTC’s objection concludes. “Therefore, for the above reasons, the FTC respectfully requests that the court deny confirmation of the debtor’s proposed plan; strike sections VIII.B and D of the proposed plan; or grant any other relief the court deems just and proper.”
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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