The U.S. Federal Alternate Commission (FTC) is investigating Voyager for sure fraudulent practices.

In an objection filed with U.S. Economic ruin Court docket for the Southern District of New York on Wednesday, the FTC alleged that Voyager unfairly marketed cryptocurrency to the public. It objected to Voyager’s proposed notion to sell its sources to Binance.US for $1 billion on the grounds that it offers the company a discharge to which they set no longer appear to be legally entitled.

Final month, Reuters reported that U.S. Economic ruin Settle Michael Wiles allowed Voyager to enter an asset like settlement with Binance.US. Voyager estimated that this sale would enable its customers to enhance 51% of the worth of their deposits on the time of the financial ruin filing.

The FTC argued that the court would possibly perchance well perhaps additionally soundless block the sale fully, or strike the releases and injunctive provisions, as a result of it violates the Economic ruin Code and relevant case legislation. The Code namely prevents discharge of “fraud-linked debts” held by a governmental unit, said the commission.

In actual fact, the commission needs to forestall some events interesting about Voyager’s financial ruin court cases from sure financial claims as a result of of the “false-representations” tied to their debt.

The U.S. SEC has also objected to the notion, but its objection namely questions how Binance.US can afford to exhaust $1 billion on shopping Voyager’s sources.

Earlier this week, Binance CEO Changpeng Zhao said the crypto trade had pulled motivate some capacity investments into bankrupt U.S.-primarily based companies. Though he did no longer name Voyager namely, Zhao said the trade would behold permission sooner than it entered into any bids going ahead.