Would You like a feature Interview?
All Interviews are 100% FREE of Charge
The U.S. Federal Trade Commission has said it has launched an investigation into cryptocurrency lending firm Voyager Digital, paralleling the company’s bankruptcy proceedings.
In filings filed with the Southern District of New York Bankruptcy Court on February 22, the FTC Said The company was investigating Voyager and its employees “for deceptive and unfair marketing of cryptocurrencies to the public.” The announcement follows bankruptcy judge Michael Wiles’ initial approval of a plan by Voyager debtors to sell the company’s assets to Binance for more than $1 billion.
According to FTC filings (objections to debtors’ plans), the Commission found that some parties involved in Voyager’s bankruptcy proceedings “including debts under ‘misrepresentation’ and should not be excused from the financial claims of :
“By failing, among other things, to exclude false claims and misrepresentations, this release could be construed as prejudicial to a cause of action by a government agency such as the FTC. This is unacceptable. […] The FTC respectfully requests the court to refuse to confirm the debtor’s proposed plan. ”
new @FTC Cryptocurrency fraud is on the rise, with nearly $1 in $4 reported lost to fraud paid in cryptocurrency, according to analysis.
Since early 2021, consumers have reported losing over $1 billion in cryptocurrency to fraud.https://t.co/AnWqzj93jK
— Lina Khan (@linakhanFTC) June 3, 2022
Voyager filed for Chapter 11 bankruptcy in the United States in July 2022, ahead of similar filings from Celsius Network, FTX and BlockFi. One of the proposed restructuring plans would have been for Binance.US to acquire Voyager’s assets, but the U.S. Securities and Exchange Commission ruled against the move, citing a lack of “necessary information.” I disagree.
Related: Voyager creditors file SBF with subpoenas to appear in court for ‘remote deposits’
Bankruptcy proceedings for Celsius and FTX are also underway, with their respective chief executives Alex Mashinski and Sam Bankman-Fried committing acts allegedly taken before filing for Chapter 11 bankruptcy. faces scrutiny from U.S. authorities. % of users expected to recover about 70% of their funds.
