US Federal Trade Commission Investigates Marketing Schemes of Crypto Firm Voyager

According to a tribunal papers filed precocious successful the Voyager Digital bankruptcy case, the U.S. Federal Trade Commission (FTC) is investigating the selling of the crypto firm. Like the U.S. Securities and Exchange Commission (SEC), the FTC has objected to Binance US purchasing Voyager’s assets.

FTC’s Objection to Voyager’s Proposed Sale Plan Could Impact Bankruptcy

In a filing successful bankruptcy tribunal registered connected Feb. 22, 2023, the U.S. Federal Trade Commission (FTC) elaborate that it is investigating the selling schemes of the crypto steadfast Voyager Digital. “The FTC has commenced an probe into definite acts and practices of [Voyager] and [the] debtors’ employees, directors, and officers, for their deceptive and unfair selling of cryptocurrency to the public,” the ailment explains.

The FTC filing says the projected merchantability of the debtor’s assets would interfere with the existent probe, which could fundamentally discharge Voyager and circumstantial unit members from alleged “fraud-related debts held by a governmental unit.” The FTC is not the lone authorities bureau investigating Voyager. Texas’s securities regulator and lawyer wide objected to FTX purchasing Voyager anterior to FTX’s collapse.

The Securities and Exchange Commission (SEC) objected to the projected acquisition by Binance US. Despite the objection, Voyager received tribunal support to proceed with the sale. Voyager’s ineligible representation, Allyson Smith of Kirkland & Ellis, told the tribunal the merchantability is “on track” to proceed. “We are connected way and don’t expect immoderate obstacles,” Voyager’s lawyer stressed. However, the latest filing by the FTC insists that the debtors are “not entitled to a discharge here.”

“Further, adjacent if debtors were entitled to a discharge (through cognition of consensual releases, for example), the codification specifically precludes the discharge of fraud-related debts held by a governmental unit,” the FTC’s objection concludes. “Wherefore, for the foregoing reasons, the FTC respectfully requests the tribunal contradict confirmation of the debtors’ projected plan; onslaught Section VIII.B and D of the projected plan; oregon assistance immoderate different alleviation the Court deems conscionable and proper.”

What bash you deliberation astir the Federal Trade Commission saying it is investigating Voyager Digital’s selling practices? Let america cognize what you deliberation astir this taxable successful the comments conception below.

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