FTC Launches Investigation into Voyager’s Alleged Deceptive Crypto Marketing Tactics – Here’s the Latest

The Federal Trade Commission (FTC) has announced that it is investigating bankrupt crypto lender Voyager Digital for “deceptive and unfair marketing of cryptocurrency to the public”.

The investigation was announced in a Admission with the U.S. Bankruptcy Court for the Southern District of New York, where the FTC officially objected to a reorganization plan that was initially approved by the judge in the case.

The agency said in the document that the proposed restructuring plan, which the FTC has now objected to, would mean Voyager would not be held liable for “actual fraud, willful misconduct, or gross negligence.”

The FTC further noted in the filing that certain parties involved in bankruptcy proceedings should not be exempt from claims, adding that this includes loans for “false representation” and “false pretenses.”

This “violates the Bankruptcy Code and relevant case law,” the agency wrote.

Regulators don’t mind for the first time

The announcement by the FTC isn’t the first time US regulators have caused problems for Voyager after it filed for bankruptcy. In January this year, the Securities and Exchange Commission (SEC) filed Objection to a move by Binance.US To buy assets from bankrupt crypto lenders.

then came the objection binance.us announced Acquisition of distressed assets from Voyager Digital The deal valued the bankrupt company at around $1bn. Under the deal, Binance.US was to deposit $10m, and reimburse Voyager for certain expenses of up to $15m.

Binance.US plans to do the same Plan by FTX US to buy assets, but that plan failed when FTX went bankrupt. Voyager then reopened the bidding process for the company, which was eventually won by Binance.US.

Voyager Digital filed for bankruptcy under Chapter 11 of the US Bankruptcy Code in July of 2022, saying at the time that it would seek to implement a restructuring plan and “maximize value for all stakeholders.”