America Federal Commerce Fee stated it had began an investigation of crypto lending agency Voyager Digital parallel to the corporate’s chapter proceedings.

In a Feb. 22 submitting in U.S. Chapter Courtroom for the Southern District of New York, the FTC said it was investigating Voyager and its workers “for his or her misleading and unfair advertising and marketing of cryptocurrency to the general public.” The announcement adopted Chapter Choose Michael Wiles initially approving of a plan by which Voyager debtors would promote the agency’s property to Binance.US for greater than $1 billion.

In keeping with the FTC submitting — an objection to the debtors’ plan — the fee argued a few of the events concerned in Voyager’s chapter proceedings shouldn’t be exempt from sure monetary claims, “together with money owed for ‘false illustration,’ and ‘false pretenses’”:

“By not excluding, inter alia, false pretenses and false representations, the discharge might be learn to intrude with causes of motion by a governmental unit just like the FTC. That is impermissible […] the FTC respectfully requests the Courtroom deny affirmation of the Debtors’ Proposed Plan.”

New @FTC evaluation reveals that cryptocurrency scams are proliferating, with about 1 out of each 4 {dollars} reported misplaced to fraud paid in cryptocurrency.

For the reason that begin of 2021, customers have reported shedding over $1 billion in crypto to scams.https://t.co/AnWqzj93jK

— Lina Khan (@linakhanFTC) June 3, 2022

Voyager filed for Chapter 11 chapter in the USA in July 2022 previous to related filings from Celsius Community, FTX and BlockFi. One of many proposed plans for restructuring the agency would have Binance.US purchase Voyager’s property, however the U.S. Securities and Change Fee has objected to the transfer, citing an absence of “mandatory data.”

Voyager collectors serve SBF a subpoena to seem in courtroom for a ‘distant deposition’

Chapter proceedings for Celsius and FTX are additionally ongoing, with respective chief government officers Alex Mashinsky and Sam Bankman-Fried going through scrutiny from U.S. authorities for his or her alleged actions previous to the businesses submitting for Chapter 11. Below Celsius’ proposed restructuring plan, greater than 85% of customers have been anticipated to get better roughly 70% of their funds.