In line with a court docket doc filed not too long ago within the Voyager Digital chapter case, the U.S. Federal Commerce Fee (FTC) is investigating the advertising of the crypto agency. Just like the U.S. Securities and Alternate Fee (SEC), the FTC has objected to Binance US buying Voyager’s property.
FTC’s Objection to Voyager’s Proposed Sale Plan Might Affect Chapter
In a submitting in chapter court docket registered on Feb. 22, 2023, the U.S. Federal Commerce Fee (FTC) detailed that it’s investigating the advertising schemes of the crypto agency Voyager Digital. “The FTC has commenced an investigation into sure acts and practices of [Voyager] and [the] debtors’ workers, administrators, and officers, for his or her misleading and unfair advertising of cryptocurrency to the general public,” the grievance explains.
The FTC submitting says the proposed sale of the debtor’s property would intrude with the present probe, which may basically discharge Voyager and particular workers members from alleged “fraud-related money owed held by a governmental unit.” The FTC is just not the one authorities company investigating Voyager. Texas’s securities regulator and lawyer normal objected to FTX buying Voyager previous to FTX’s collapse.
The Securities and Alternate Fee (SEC) objected to the proposed acquisition by Binance US. Regardless of the objection, Voyager acquired court docket approval to proceed with the sale. Voyager’s authorized illustration, Allyson Smith of Kirkland & Ellis, instructed the court docket the sale is “on observe” to proceed. “We’re on observe and don’t anticipate any obstacles,” Voyager’s lawyer careworn. Nonetheless, the newest submitting by the FTC insists that the debtors are “not entitled to a discharge right here.”
“Additional, even when debtors had been entitled to a discharge (via operation of consensual releases, for instance), the code particularly precludes the discharge of fraud-related money owed held by a governmental unit,” the FTC’s objection concludes. “Wherefore, for the foregoing causes, the FTC respectfully requests the court docket deny affirmation of the debtors’ proposed plan; strike Part VIII.B and D of the proposed plan; or grant some other reduction the Court docket deems simply and correct.”
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