The U.S. judge approved a $1.65 billion settlement between Voyager Digital and the FTC

2023-11-29 05:34:34

By Turner Wright, Cointelegraph, compiled by Song Xue, Golden Finance

A federal judge has approved an order requiring crypto lending company Voyager Digital and its affiliates to pay $1.65 billion to the U.S. Federal Trade Commission (FTC).

In a Nov. 28 filing with the U.S. District Court for the Southern District of New York, Judge Gregory Woods ordered Voyager to pay $1.65 billion after announcing a settlement with the FTC in October. As part of the agreement, Voyager will be “permanently restricted and prohibited” from marketing or offering products or services related to digital assets. **

SOURCE: PACER

The judge said the order would largely not affect proceedings in the bankruptcy court, and Voyager filed for Chapter 11 bankruptcy protection in July 2022 and disclosed liabilities ranging from $1 billion to $10 billion. In May, the court approved a plan that would allow Voyager users to initially receive 35.72% of their claims from the lending company.

Under the settlement agreement, **parties associated with Voyager must cooperate with FTC officials, including testifying at hearings, trials, and discovery. After one year, Voyager must also report on its compliance with procedures and be monitored by the Commission. **

In October, the U.S. Commodity Futures Trading Commission and the Federal Trade Commission filed parallel lawsuits against former Voyager CEO Stephen Ehrlich, accusing him of making misleading statements about the use and security of client funds. Ehrlich claimed at the time that the Voyager team was in “constant communication and working closely together” with regulators, but essentially denied the allegations.

In July, the FTC ordered crypto lending firm Celsius to pay $4.7 billion in fees, accusing the company’s co-founder of misappropriating user assets and misleading investors about the platform’s services. U.S. officials have arrested Alex Mashinsky, the former CEO of Celsius, who is currently on bail until his trial, which is scheduled to begin in September 2024.

Source: Golden Finance

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