2 years ago
In an objection to Voyager's projected restructuring plan, the committee argued immoderate of the progressive parties should not beryllium exempt from definite fiscal claims successful the future.
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The United States Federal Trade Commission, oregon FTC, said it had started an probe of crypto lending steadfast Voyager Digital parallel to the company’s bankruptcy proceedings.
In a Feb. 22 filing successful U.S. Bankruptcy Court for the Southern District of New York, the FTC said it was investigating Voyager and its employees “for their deceptive and unfair selling of cryptocurrency to the public”. The announcement followed Bankruptcy Judge Michael Wiles initially approving of a plan successful which Voyager debtors would merchantability the firm’s assets to Binance.US for much than $1 billion.
According to the FTC filing — an objection to the debtors’ program — the committee argued immoderate of the parties progressive successful Voyager’s bankruptcy proceedings should not beryllium exempt from definite fiscal claims, “including debts for ‘false representation,’ and ‘false pretenses’”:
“By not excluding, inter alia, mendacious pretenses and mendacious representations, the merchandise tin beryllium work to interfere with causes of enactment by a governmental portion similar the FTC. This is impermissible [...] the FTC respectfully requests the Court contradict confirmation of the Debtors’ Proposed Plan.”New @FTC investigation shows that cryptocurrency scams are proliferating, with astir 1 retired of each 4 dollars reported mislaid to fraud paid successful cryptocurrency.
Since the commencement of 2021, consumers person reported losing implicit $1 cardinal successful crypto to scams.https://t.co/AnWqzj93jK
Voyager filed for Chapter 11 bankruptcy successful the United States successful July 2022 anterior to akin filings from Celsius Network, FTX, and BlockFi. One of the projected plans for restructuring the steadfast would person Binance.US get Voyager’s assets, but the U.S. Securities and Exchange Commission has objected to the move, citing a deficiency of “necessary information.”
Related: Voyager creditors service SBF a subpoena to look successful tribunal for a ‘remote deposition’
Bankruptcy proceedings for Celsius and FTX are besides ongoing, with respective main enforcement officers Alex Mashinsky and Sam Bankman-Fried facing scrutiny from U.S. authorities for their alleged actions anterior to the companies filing for Chapter 11. Under Celsius’ projected restructuring plan, much than 85% of users were expected to recover astir 70% of their funds.
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