FTC Launches Investigation Into Marketing Of This Crypto Lending Firm

Join Our Telegram channel to stay up to date on breaking news coverage

In a bankruptcy court filing on February 22, the U.S. Federal Trade Commission (FTC) revealed that it is investigating the marketing schemes of the crypto lending firm Voyager. As per the complaint, FTC has commenced a probe into certain acts and practices of Voyager and its employees” for their deceptive and unfair marketing of cryptocurrency to the public.”

However, the announcement came after Bankruptcy judge Michael wiles previously approved a plan in which the lending firm’s debtors would sell Voyager’s assets to Binance.US for over $1 billion. Notably, the FTC filing stipulates that the proposed sale of debtors’ assets would interfere with the ongoing probe. It could free the lending firm and some staff members from the alleged “fraud-related charges held by the governmental unit.”

On January 10, Judge Michael Wiles allowed the lending firm to enter an asset purchase agreement and see creditor approval. However, a Reuters report says the sale will not become final until a future court hearing.

Apart from FTC, other governmental agencies are investigating Voyager. The Texas securities and attorney general objected to the troubled exchange firm FTX purchasing Voyager before its demise. Notably, the Securities and Exchange Commission (SEC) objected to the proposed acquisition by Binance.US. Despite the objections, the lending platform acquired court approval to continue the sale.

Allyson Smith of Kirkland & Ellis, Voyager’s legal team, noted that the sale is progressing. “We are on track, and we don’t anticipate any obstacles, Voyager’s lawyers stipulated.

FTC requests to the Court

Noteworthy, the latest filing by FTC insists that some of the parties involved in Voyager’s bankruptcy proceeding should not be excluded from various financial claims. Some of the claims include debts for false representation and false pretenses. The Commission stated:

By not exempting, among other things, pretenses and representations, the release can be read to interfere with causes of action by a governmental unit like the FTC. The FTC respectfully requests the Court to deny confirmation of the Debtor’s Proposed Plan.

Voyager is among the firms that filed for Chapter 11 Bankruptcy Protection in July last year, including BlockFi and Celsius Network. The lending firm noted that the move is part of “a reorganization plan.” The plan would allow customers to re-access their accounts when implemented, and Voyager would return value to its clients.

SBF opposes order to testify in Voyager Bankruptcy Hearing

In Voyager’s Bankruptcy case, the lawyers representing Voyager’s unsecured creditors served SBF a subpoena. Additionally, Voyager Digital and SBF’s two entities, Alameda Research and FTX had some connection before things fell apart. In that, SBF’s trading firm, Alameda Research, served as one of the most significant shareholders of Voyager.

However, various events and investigations surrounding the bankrupt FTX exchange are among the top cases in the crypto space. Notably, the bankruptcy proceedings are ongoing, as the former Chief Executive of FTX, SBF, faces scrutiny from U.S. authorities. On the other hand, the Celsius Network is notably facing scrutiny from the U.S. authorities for its alleged actions before the platform’s filing for bankruptcy protection. However, under Celsius’ proposed restructuring plan, over 85% of its customers were expected to recover about 70% of their funds.

More News:

Fight Out (FGHT) – Newest Move to Earn Project

Fight Out token
  • CertiK audited & CoinSniper KYC Verified
  • Early Stage Presale Live Now
  • Earn Free Crypto & Meet Fitness Goals
  • LBank Labs Project
  • Partnered with Transak, Block Media
  • Staking Rewards & Bonuses

Fight Out token


 

Join Our Telegram channel to stay up to date on breaking news coverage

Source: https://insidebitcoins.com/news/ftc-launches-investigation-into-marketing-of-this-crypto-lending-firm