The US regulators have been cracking down exhausting on the cryptocurrency business, with the US SEC main the cost. Nonetheless, in relation to the bankrupt crypto lender referred to as Voyager Digital and its executives, they’re really being probed by the US Federal Commerce Fee (FTC). The FTC’s current filing stated that it suspects the bankrupt crypto lender had engaged in misleading cryptocurrency advertising and marketing.
FTC is probing Voyager for allegedly misleading crypto advertising and marketing practices. This might have a significant influence on the crypto business. #crypto #marketing #FTC #Voyager
— BitArchive (@ChainArchives) February 22, 2023
The suspicion led to a radical investigation, which is at present nonetheless on-going. The FTC famous that it doesn’t need any plan to wind up the affairs of the “debtor,” that means Voyager, to disrupt its investigation of the failed crypto agency.
The FTC is investigating Voyager’s advertising and marketing practices
The submitting additional says that
The FTC has commenced an investigation into sure acts and practices of Debtors and Debtors’ workers, administrators, and officers, for his or her misleading and unfair advertising and marketing of cryptocurrency to the general public.
Voyager filed for chapter as a consequence of inauspicious market situations, with a chapter plan being proposed by the agency on January 13th. The plan concerned promoting the agency’s belongings to Binance.US, the US-based subsidiary of the world’s largest crypto trade by quantity. Nonetheless, the half that the FTC has an issue with is that the plan would have launched each the companies and its workers from any monetary claims.
Since that additionally consists of claims linked to any potential wrongdoings, the FTC just isn’t keen to let this occur till it establishes whether or not there have been any wrongdoings, what they concerned, and who’s accountable.
US Authorities oppose the Binance.US-Voyager plan
The submitting additional stated that the proposed plan couldn’t be confirmed because it violates the chapter code, and related case legislation. As plan proponents, the debtors — that means Voyager and its workers — are those who bear the burden of proof with respect to the affirmation necessities. Nonetheless, the FTC established that they may not meet this burden. In consequence, the FTC has the authority to halt the execution of the proposed plan, which, in accordance with the regulator, is nothing greater than a disguised discharge to which the debtors should not entitled to, given the circumstances.
On its finish, Binance.US meant to buy Voyager’s belongings for $1.02 billion in a deal that now appears somewhat unlikely. Moreover, some parts of the deal itself might infringe the legislation, because the deal says that the transactions in crypto belongings essential to effectuate the rebalancingand redistribution of belongings to account holders may violate the prohibition of the 1933 Securities Act.
Other than the FTC, the deal was additionally opposed by the NYDFS (New York State’s Departmen of Monetary Providers), and Legal professional Normal Letitia James.
The U.S. SEC, together with the NYDFS and Legal professional Normal Letitia James, filed opposition to BinanceUS’ acquisition of Voyager’s belongings value $1.02 billion, citing issues relating to the deal.
The filings have been made on February 22: CoinDesk.
— BecauseBitcoin.com (@BecauseBitcoin) February 23, 2023
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