FTC announces investigation into Voyager’s ‘deceptive and unfair marketing’ of crypto

Mar 10, 2023 | wjb news

The Federal Trade Commission says it is now investigating password credit company Voyager Digital after logging in to bankruptcy proceedings.

In a document filed with the bankruptcy Court of the South District of New York City on February 22nd, the FTC said it was dealing with Voyager and employees, mainly because they "fraudulently and unfairly promote digital money to society." Previously, the failed presiding judge, Michael Wiles, initially approved a plan under which travelers would sell corporate assets to Binance.US for more than $1 billion.

According to documents submitted by the Federal Trade Commission-resistance to borrowers' plans-the Federation made up lies that some defendants in Voyager bankruptcy proceedings could not be exempted from accounting claims, "debts containing 'false statements' and 'false excuses'":

"among other things, the release of false excuses and false statements can be seen as an excuse for prosecution that affects government agencies such as the Federal Trade Commission. This is also forbidden [.] The Federal Trade Commission pleaded with the court to reject the plan proposed by the confirmed borrower.

Travelers declared bankruptcy under Chapter 11 of the Company Law in the United States in July 2022, and Celsius Network, FTX and BlockFi filed similar applications later. One of the proposed corporate restructuring plans is to allow Binanc.US to recover Voyager's property, but the SEC resisted the move on the grounds that it lacked "necessary information".

Bankruptcy proceedings for Celsius and FTX are still under way, with top chief executives Alex Mashinsky and Sam Bankman-Fry suspected of being checked by US authorities for actions made before the two companies filed for bankruptcy protection. According to the restructuring plan proposed by Celsius, it is estimated that more than 85 per cent of users will get back about 70 per cent of the funds.