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FTC broadcasts investigation into Voyager’s ‘misleading and unfair advertising and marketing’ of crypto


The US Federal Commerce Fee stated it had began an investigation of crypto lending agency Voyager Digital parallel to the corporate’s chapter proceedings.

In a Feb. 22 submitting in U.S. Chapter Court docket for the Southern District of New York, the FTC stated it was investigating Voyager and its workers “for his or her misleading and unfair advertising and marketing of cryptocurrency to the general public.” The announcement adopted Chapter Decide Michael Wiles initially approving of a plan during which Voyager debtors would promote the agency’s belongings to Binance.US for greater than $1 billion.

In accordance with the FTC submitting — an objection to the debtors’ plan — the fee argued a number of the events concerned in Voyager’s chapter proceedings shouldn’t be exempt from sure monetary claims, “together with money owed for ‘false illustration,’ and ‘false pretenses’”:

“By not excluding, inter alia, false pretenses and false representations, the discharge might be learn to intervene with causes of motion by a governmental unit just like the FTC. That is impermissible […] the FTC respectfully requests the Court docket deny affirmation of the Debtors’ Proposed Plan.”

Voyager filed for Chapter 11 chapter in america in July 2022 previous to comparable filings from Celsius Community, FTX and BlockFi. One of many proposed plans for restructuring the agency would have Binance.US purchase Voyager’s belongings, however the U.S. Securities and Change Fee has objected to the transfer, citing an absence of “vital data.”

Associated: Voyager collectors serve SBF a subpoena to seem in courtroom for a ‘distant deposition’

Chapter proceedings for Celsius and FTX are additionally ongoing, with respective chief govt officers Alex Mashinsky and Sam Bankman-Fried going through scrutiny from U.S. authorities for his or her alleged actions previous to the businesses submitting for Chapter 11. Underneath Celsius’ proposed restructuring plan, greater than 85% of customers had been anticipated to get well roughly 70% of their funds.