According to a court file submitted just recently in the Voyager Digital insolvency case, the U.S. Federal Trade Commission (FTC) is examining the marketing of the crypto firm. Like the U.S. Securities and Exchange Commission (SEC), the FTC has actually challenged Binance US buying Voyager’s properties.
FTC’s Objection to Voyager’s Proposed Sale Plan Could Impact Bankruptcy
In a filing in insolvency court signed up on Feb. 22, 2023, the U.S. Federal Trade Commission (FTC) detailed that it is examining the marketing schemes of the crypto firm Voyager Digital. “The FTC has commenced an investigation into certain acts and practices of [Voyager] and [the] debtors’ employees, directors, and officers, for their deceptive and unfair marketing of cryptocurrency to the public,” the problem describes.
The FTC filing states the suggested sale of the debtor’s properties would hinder the present probe, which might basically release Voyager and particular team member from declared “fraud-related debts held by a governmental unit.” The FTC is not the only federal government firm examining Voyager. Texas’s securities regulator and chief law officer challenged FTX buying Voyager prior to FTX’s collapse.
The Securities and Exchange Commission (SEC) challenged the proposed acquisition by Binance US. Despite the objection, Voyager got court approval to continue with the sale. Voyager’s legal representation, Allyson Smith of Kirkland & Ellis, informed the court the sale is “on track” to continue. “We are on track and don’t anticipate any obstacles,” Voyager’s legal representative worried. However, the current filing by the FTC firmly insists that the debtors are “not entitled to a discharge here.”
“Further, even if debtors were entitled to a discharge (through operation of consensual releases, for example), the code specifically precludes the discharge of fraud-related debts held by a governmental unit,” the FTC’s objection concludes. “Wherefore, for the foregoing reasons, the FTC respectfully requests the court deny confirmation of the debtors’ proposed plan; strike Section VIII.B and D of the proposed plan; or grant any other relief the Court deems just and proper.”
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