US Judge approves $1.65 billion settlement agreement between Voyager Digital and FTC

US Judge Grants Approval of $1.65 Billion Settlement Agreement between Voyager Digital and FTC

Author: Turner Wright, Cointelegraph; Translation: Song Xue, LianGuai

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

In a filing submitted to the U.S. District Court for the Southern District of New York on November 28, Judge Gregory Woods ordered Voyager to pay $1.65 billion following the announcement of a settlement with the FTC in October. As part of the agreement, Voyager will be “permanently restrained and enjoined” from marketing or offering products or services related to digital assets.

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Source: LianGuaiCER

The judge stated that this order will not significantly impact the bankruptcy court proceedings, as Voyager filed for bankruptcy protection under Chapter 11 of the bankruptcy code in July 2022, disclosing debts between $1 billion and $10 billion. In May, the court approved a plan that allowed Voyager users to initially receive 35.72% of their claims from the lending company.

According to the settlement agreement, all parties associated with Voyager must cooperate with FTC officials, including testifying at hearings, trials, and discovery of evidence. One year later, Voyager must also report on its compliance and be subject to the Commission’s oversight.

In October, the U.S. Commodity Futures Trading Commission and the Federal Trade Commission filed parallel lawsuits against Voyager’s former CEO, Stephen Ehrlich, accusing him of making misleading statements regarding the use and security of customer funds. Ehrlich at the time claimed that the Voyager team was in “continual communication and close cooperation” with regulatory agencies, but essentially denied these allegations.

In July of this year, the FTC ordered cryptocurrency lending company Celsius to pay $4.7 billion, accusing the company’s co-founders of misappropriating user assets and misleading investors about the platform’s services. U.S. officials arrested Celsius’s former CEO, Alex Mashinsky, who is currently released on bail pending trial scheduled to start in September 2024.

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