Judge approves $1.65 billion settlement between Voyager Digital and FTC

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

In a court filing Nov. 28 in the U.S. District Court for the Southern District of New York, Judge Gregory Woods ordered Voyager to pay $1.65 billion following a settlement between the lending company and the FTC announced in October. As part of the agreement, Voyager will be “permanently prohibited and enjoined” from marketing or providing any products or services related to digital assets.

Source: PACER

According to Judge Woods, the order will largely not impact the bankruptcy court proceedings, where Voyager filed for Chapter 11 protection in July 2022 and has disclosed debts ranging from 1 to 10 billion dollars. In May, the court approved a plan allowing Voyager users to initially receive 35.72% of their debts from the lending company.

Under the settlement, parties associated with Voyager must cooperate with FTC officials, including by testifying at hearings, trials, and discovery investigations. After one year, Voyager must also report on its compliance with the procedures, subject to review by the commission.

Related: FTC Improves Investigative Procedures to Combat AI-Related Law Violations

In October, the U.S. Commodity Futures Trading Commission and the FTC filed parallel lawsuits against former Voyager CEO Stephen Ehrlich, alleging that he made misleading statements regarding the use and security of company funds. clients. Ehrlich said at the time that the Voyager team “consistently communicated and worked closely” with regulators, largely denying the allegations.

In July, the FTC ordered crypto lending company Celsius to pay $4.7 billion in fees, alleging the company’s co-founders misappropriated user assets and misled investors about the platform’s services . US authorities have arrested former Celsius CEO Alex Mashinsky, who remains free on bail until his trial, which is scheduled to begin in September 2024.

Review: US Law Enforcement Turns Up Pressure on Crypto Crime