Summary of the Article
- The US Federal Trade Commission (FTC) is investigating bankrupt lender Voyager Digital and its executives for deceptive and unfair marketing of cryptocurrency.
- The FTC has objected to Binance.US‘ planned acquisition of Voyager’s asset, arguing that the sale could „interfere with causes of action by a governmental unit like the FTC.“
- In December 2022, Binance.US entered a deal to acquire the bankrupt’s firm asset for $1.022 billion, but financial regulators like the U.S. Securities and Exchange Commission (SEC) have objected to it.
Investigation into Bankrupt Firm
The US Federal Trade Commission (FTC) said it was investigating bankrupt lender Voyager Digital and its executives, according to a Feb. 22 court filing. The FTC said it was investigating „certain acts and practices“ of Voyager that constituted „deceptive and unfair marketing of cryptocurrency to the public.“
Objection to Binance-Voyager Deal
Due to this reason, the regulator has objected to Binance.US‘ planned acquisition of Voyager’s asset, arguing that the sale could „interfere with causes of action by a governmental unit like the FTC.“ FTC argued that Voyagers‘ planned acquisition by Binance.US would „discharge“ it and its employees from claims linked to fraud. The financial regulator wants the court to exclude sections of the proposal that would allow Voyager or its employees go scot-free from any potential fraud allegations against them.
Binance-Voyager Acquisition Plan
In December 2022, Binance.US entered a deal to acquire Voyager’s asset for $1.022 billion; however, financial regulators like the U.S Securities and Exchange Commission (SEC) have objected to this agreement as well as bankrupt firm Alameda also opposing it due too similar reasons as above mentioned by FTC officials in their objection statement against this proposed plan..