U.S. Judge Approves $1.65 Billion Settlement Agreement Between Voyager Digital and FTC
Federal Judge Gregory Woods has approved an order requiring the cryptocurrency lending company Voyager Digital and its affiliates to pay a settlement of $1.65 billion to the Federal Trade Commission (FTC). According to documents filed with the U.S. Southern District Court of New York, the judge stated that the order would largely not impact the bankruptcy court proceedings. Voyager filed for bankruptcy protection in July 2022. As part of the settlement agreement, Voyager will be “permanently restrained and enjoined” from marketing or providing products or services related to digital assets. Under the settlement agreement, parties associated with Voyager must cooperate with FTC officials, including testifying in hearings, trials, and evidentiary disclosures. After one year, Voyager must also report its compliance status and be subject to FTC supervision. In October, the FTC announced that it had reached a settlement with the bankrupt crypto lending company Voyager Digital, permanently banning it from handling consumer assets. The FTC claimed that Voyager and its former CEO, Stephen Ehrlich, misled consumers, resulting in over $1 billion in cryptocurrency losses for consumers after the company collapsed. The proposed settlement agreement with Voyager and its affiliates would permanently prohibit these companies from offering, marketing, or promoting any products or services
