Judge signs off on $1.65B settlement between Voyager Digital and FTC

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A federal decide has authorised an order requiring crypto lending agency Voyager Digital and its associates to pay $1.65 billion in financial aid to the United States Federal Trade Commission (FTC).

In a Nov. 28 submitting in 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 agency and the FTC introduced in October. As a part of the settlement, Voyager can be “permanently restrained and enjoined” from advertising and marketing or offering services or products associated to digital property.

Source: PACER

According to Judge Woods, the order will largely not affect proceedings in chapter courtroom, the place Voyager filed for Chapter 11 protection in July 2022 and disclosed liabilities starting from $1 billion to $10 billion. In May, the courtroom approved a plan permitting Voyager customers to obtain 35.72% of their claims from the lending agency initially.

Under the settlement, events related to Voyager should cooperate with FTC officers, together with testimony at hearings, trials and discovery. After a yr, Voyager should additionally report on its compliance with the proceedings, topic to monitoring by the fee.

Related: FTC enhances investigative procedures to deal with AI-related lawbreaking

In October, the U.S. Commodity Futures Trading Commission and the FTC filed parallel lawsuits towards former Voyager CEO Stephen Ehrlich, alleging he made deceptive statements concerning the use and security of buyer funds. Ehrlich claimed on the time that Voyager’s workforce “consistently communicated and worked closely” with regulators, largely denying the allegations.

In July, the FTC ordered crypto lending firm Celsius to pay $4.7 billion in charges, alleging the corporate’s co-founders misappropriated consumer property and misled buyers in regards to the platform’s companies. U.S. officers arrested former Celsius CEO Alex Mashinsky, who stays free on bail till his trial, scheduled to begin in September 2024.

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