FTC objects to Binance.US-Voyager deal; reveals investigation into bankrupt firm News ▸ US ▸ Bankruptcy
FTC objects to Binance.US-Voyager deal; reveals investigation into bankrupt firm
FTC argued that Voyagers' planned acquisition by Binance.US would "discharge" it and its employees from claims linked to fraud.
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Updated: Feb. 22, 2023 at 5:36 pm UTC
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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.”
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 the proposed plan would “discharge” Voyager and its employees from claims linked to possible fraud.
The financial regulator wants the court to exclude sections of the proposal that would allow the firm or its employees to go scot-free.
In December 2022, Binance.US entered a deal to acquire the bankrupt’s firm asset for $1.022 billion.
Meanwhile, financial regulators like the U.S. Securities and Exchange Commission (SEC) have objected to the deal. The bankrupt firm Alameda also objected to the agreement.
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Posted In: US, Bankruptcy
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Oluwapelumi values Bitcoin's potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.
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FTX
FTX is a defunct cryptocurrency exchange, currently in bankruptcy proceedings, that was founded by Sam Bankman-Fried and Zixiao “Gary” Wang in May 2019.
Voyager
Voyager Digital is a bankrupt cryptocurrency exchange company in the United States that was founded in 2018.
Binance.US
Binance.US will provide secure and reliable cryptocurrency trading to users in the United States.