FTC launches investigation into Voyager’s alleged deceptive crypto marketing tactics – Here’s the latest
Federal Trade Commission (FTC), has announced that Voyager Digital, a bankrupt crypto lender, is being investigated for “deceptive or unfair marketing of cryptocurrency to public”.
An announcement was made about the investigation. Filing The FTC filed an official objection to the restructuring plan approved initially by the judge at the US Bankruptcy Court for Southern District of New York.
Voyager would not be held responsible for “actual fraud”, willful misconduct or gross negligence, as the FTC has now objected to the proposed restructuring plan.
In addition, the FTC noted that certain parties in bankruptcy proceedings should not be exempted from claims. This includes debts for “false representation” and “false pretenses”.
The agency stated that this “violates both the Bankruptcy Code” and the relevant case law.
Regulators object not for the first time
Voyager’s bankruptcy filings led to problems with US regulators. This is not the first time that the FTC has made an announcement about Voyager. The Securities and Exchange Commission (SEC), in January, objected to Binance.US’s plan to acquire assets from the bankrupt crypto lender.
Binance.US had announced that it would take over Voyager Digital’s distressed assets in a deal worth approximately $1bn. The deal required Binance.US to deposit $10m and to reimburse Voyager up to $15million.
Binance.US’s plan was similar to FTX US’s plan to acquire assets. However, that plan was canceled when FTX declared bankruptcy. Voyager then opened the bidding process again for the company and Binance.US won.
Voyager Digital filed bankruptcy under Chapter 11 US Bankruptcy Code July 2022. It stated that it would seek to implement an reorganization plan, and “maximize value” for all parties.