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U.S. Judge Approves $1.65 Billion Settlement Agreement Between Voyager Digital and FTC

U.S. Judge Approves $1.65 Billion Settlement Agreement Between Voyager Digital and FTC WikiBit 2023-11-29 17:48

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 usable for depositing, exchanging, investing, or withdrawing any assets. The related companies have also agreed to a $1.65 billion judgment, which will be stayed to allow Voyager to return remaining assets to consumers in the bankruptcy proceedings.

Additionally, the FTC has filed a lawsuit against Stephen Ehrlich, accusing him of falsely claiming that customer accounts were insured by the Federal Deposit Insurance Corporation (FDIC) and “safe.” Ehrlich has not agreed to a settlement with the FTC, so the case against him will be heard in federal court.

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