FTC probes Voyager over misleading crypto marketing

The U.S. Federal Trade Commission (FTC) has opened an investigation into the leadership of the bankrupt cryptocurrency broker Voyager Digital over alleged unfair and misleading marketing.

The inquiry encompasses in particular the company’s employees, directors, and officers.

In its statement, the FTC stressed that it does not want the planned sale of the debtor’s assets to Binance.US to in any way limit its investigation or release Voyager from financial claims, including those arising from violations.

The broker was one of the creditors of the hedge fund Three Arrows Capital. The latter was unable to repay a debt of 15,250 BTC and $350 million in USDC, prompting Voyager Digital to issue it a default notice in June 2022.

A month later, the company and two of its subsidiaries — Voyager Digital Holdings Inc and Voyager Digital LLC — filed bankruptcy filing, stating total liabilities in the range of $1 billion to $10 billion with around 100,000 customers.

Earlier in December, Binance’s U.S. unit offered the highest bid for the debtor’s assets — $1.002 billion and up to $20 million in potential upside.

Voyager Digital users will be able to recover a portion of their funds through Binance.US accounts.

Deal partners expect the closing of the transaction and payments to begin in March.