{"id":377181,"date":"2023-02-23T03:23:10","date_gmt":"2023-02-23T08:23:10","guid":{"rendered":"https:\/\/insidebitcoins.com\/?p=377181"},"modified":"2023-02-23T03:23:10","modified_gmt":"2023-02-23T08:23:10","slug":"ftc-launches-investigation-into-marketing-of-this-crypto-lending-firm","status":"publish","type":"post","link":"https:\/\/insidebitcoins.com\/news\/ftc-launches-investigation-into-marketing-of-this-crypto-lending-firm","title":{"rendered":"FTC Launches Investigation Into Marketing Of This Crypto Lending Firm"},"content":{"rendered":"

In a bankruptcy court filing on February 22, the U.S. Federal Trade Commission (FTC) revealed<\/a> that it is investigating the marketing schemes of the crypto lending firm Voyager. As per the complaint, FTC has commenced a probe into certain acts and practices of Voyager and its employees” for their deceptive and unfair marketing of cryptocurrency to the public.”<\/p>\n

However, the announcement came after Bankruptcy judge Michael wiles previously approved a plan in which the lending firm’s debtors would sell Voyager’s assets to Binance.US for over $1 billion. Notably, the FTC filing stipulates that the proposed sale of debtors’ assets would interfere with the ongoing probe. It could free the lending firm and some staff members from the alleged “fraud-related charges held by the governmental unit.”<\/p>\n

On January 10, Judge Michael Wiles allowed the lending firm to enter an asset purchase agreement and see creditor approval. However, a Reuters<\/em> report<\/a> says the sale will not become final until a future court hearing.<\/p>\n

Apart from FTC, other governmental agencies are investigating Voyager. The Texas securities and attorney general objected to the troubled exchange firm FTX purchasing Voyager before its demise. Notably, the Securities and Exchange Commission (SEC) objected to the proposed acquisition by Binance.US. Despite the objections, the lending platform acquired court approval to continue the sale.<\/p>\n

Allyson Smith of Kirkland & Ellis, Voyager’s legal team, noted that the sale is progressing. “We are on track, and we don’t anticipate any obstacles, Voyager’s lawyers stipulated.<\/p>\n

FTC requests to the Court <\/strong><\/h2>\n

Noteworthy, the latest filing by FTC insists that some of the parties involved in Voyager’s bankruptcy proceeding should not be excluded from various financial claims. Some of the claims include debts for false representation and false pretenses. The Commission stated:<\/p>\n

By not exempting, among other things, pretenses and representations, the release can be read to interfere with causes of action by a governmental unit like the FTC. The FTC respectfully requests the Court to deny confirmation of the Debtor’s Proposed Plan.<\/em><\/p><\/blockquote>\n

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New @FTC<\/a> analysis shows that cryptocurrency scams are proliferating, with about 1 out of every 4 dollars reported lost to fraud paid in cryptocurrency.<\/p>\n

Since the start of 2021, consumers have reported losing over $1 billion in crypto to scams.https:\/\/t.co\/AnWqzj93jK<\/a><\/p>\n

— Lina Khan (@linakhanFTC) June 3, 2022<\/a><\/p><\/blockquote>\n