The Federal Trade Commission is investigating crypto broker Voyager Digital, the agency said in a bankruptcy court filing.
The FTC is investigating Voyager and its employees “for their deceptive and unfair marketing of cryptocurrency to the public,” according to the document. The crypto firm filed for bankruptcy protection in July, after the collapse of the Terra blockchain torched the crypto markets.
Binance.US agreed to buy Voyager’s assets in December, and plans to complete the sale are “on track,” a lawyer for Voyager said on Wednesday. Several regulators have objected to the sale, however. Voyager said it had $1.3 billion of crypto assets on its platform when it filed for bankruptcy over the summer.
The FTC objected to a proposed sale of Voyager assets to Binance.US, saying the sale may interfere with the commission’s work because it could release Voyager and its employees from financial claims linked to possible fraud. The Securities and Exchange Commission has objected to Binance’s acquisition of Voyager’s assets, along with other state and federal agencies.
Meanwhile, Voyager Digital is also tied up in another crypto bankruptcy case. Alameda Research, the crypto trading firm that filed for bankruptcy protection with crypto exchange FTX, is suing Voyager for more than $445 million in loan repayments.
Disclosure: The former CEO and majority shareholder of The Block has disclosed a series of loans from former FTX and Alameda founder Sam Bankman-Fried
Source: https://www.theblock.co/post/214028/federal-trade-commission-investigates-voyagers-deceptive-and-unfair-crypto-marketing?utm_source=rss&utm_medium=rss