- The U.S. Federal Trade Commission filed an objection against Voyager Digital Ltd. (VYGVQ) as the company proceeded with bankruptcy hearings
- The FTC is objecting to the Vancouver-based cryptocurrency company’s amended plan in U.S. Bankruptcy Court for the Southern District of New York
- Voyager is attempting to shield its portfolio companies and company directors from future legal claims or other lawsuits
- Voyager Digital Ltd. is up 1.56 percent, trading at $0.0325 at 1:56 p.m. ET
The U.S. Federal Trade Commission filed an objection against Voyager Digital Ltd. (VYGVQ) as the company proceeded with bankruptcy hearings.
The FTC is objecting to the cryptocurrency company’s amended plan in the U.S. Bankruptcy Court for the Southern District of New York, according to court documents. That includes its Vancouver-based subsidiary Voyager Digital Ltd.
Voyager is attempting to shield its portfolio companies and company directors from future legal claims or other lawsuits.
“The Debtors’ proposed plan should not be confirmed because it impermissibly seeks to give the Debtors a discharge to which they are not legally entitled,” the FTC said in the court filings.
“The FTC respectfully requests the court deny confirmation of the proposed plan or strike the releases and injunctive provisions.
“The Proposed Plan cannot be confirmed because it violates the Bankruptcy Code and
relevant case law.”
Voyager is in the process of liquidating its assets.
Crypto exchange Binance had previously tried to acquire the assets of Voyager Digital in an asset sale, which is opposed by U.S. regulators.
However, in court Wednesday, Voyager lawyers told the bankruptcy judge that the sale remains on track.
Voyager initially filed for bankruptcy protection in July.
Voyager Digital Ltd. (VYGVQ) is up 1.56 percent, trading at $0.0325 at 1:56 p.m. ET.