A federal judge has approved ordering crypto lending company Voyager Digital and its affiliates to pay $1.65 billion in monetary relief to the United States Federal Trade Commission (FTC).
In a petition filed on November 28 in the US District Court for the Southern District of New York, Judge Gregory Woods ordered Voyager to pay $1.65 billion following the settlement between the lending firm and the FTC announced in October. As part of the settlement, Voyager will be “permanently banned and enjoined” from marketing or providing products or services related to digital assets.
According to Judge Woods, this order will largely have no impact on the proceedings in bankruptcy court, where Voyager Filed for Chapter 11 protection in July 2022 and disclosed liabilities ranging from $1 billion to $10 billion. In May, the court approved a plan Voyager allows users to initially receive 35.72% of their claims from the lending firm.
Under the agreement, Voyager-related parties must cooperate with FTC officials, including testimony at hearings, trials, and discovery. After one year, Voyager must also report on compliance with the proceedings, subject to monitoring by the Commission.
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In October, the US Commodity Futures Trading Commission and the FTC filed parallel lawsuits Allegations brought against Stephen Ehrlich, former CEO of Voyager, that he made misleading statements regarding the use and security of customer funds. Ehrlich claimed at the time that the Voyager team “communicated frequently and worked closely” with regulators, largely denying the allegations.
In July, the F.T.C. Crypto lending firm Celsius ordered The company’s co-founders must pay $4.7 billion in fees after being accused of misusing user assets and misleading investors about the platform’s services. US authorities arrested former Celsius CEO Alex Mashinsky, who is free on bail until his trial. about to start In September 2024.
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