Author: Turner Wright, Cointelegraph; Translated by: Song Xue, Golden Finance
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 Nov. 28 filing with the U.S. District Court for the Southern District of New York, Judge Gregory Wood ordered Voyager to pay $1.65 billion following its October announcement of a settlement with the FTC. As part of the agreement, Voyager will be “permanently restrained and prohibited” from marketing or offering products or services related to digital assets.
Source: PACER
The judge said the order will largely not affect bankruptcy court proceedings, as Voyager filed for Chapter 11 bankruptcy protection in July 2022 and disclosed liabilities of $1 billion to $10 billion. In May, the court approved a plan that would allow Voyager users to initially receive 35.72% of their claims from the lending company.
Under the settlement, parties associated with Voyager must cooperate with FTC officials, including testifying at hearings, trials and discovery. After one year, Voyager must also report on its compliance with the procedures and submit to oversight by the Commission.
In October, the CFTC and FTC filed parallel lawsuits against former Voyager CEO Stephen Ehrlich, alleging he made misleading statements about the use and security of customer funds. Ehrlich claimed at the time that the Voyager team was in "constant communication and close cooperation" with regulators, but largely denied the allegations.
In July, the FTC ordered Celsius, a cryptocurrency lending company, to pay $4.7 billion, alleging that its co-founders misappropriated user assets and misled investors about the platform’s services. U.S. officials arrested Celsius’ former CEO Alex Mashinsky, who is currently free on bail pending his trial, which is scheduled to begin in September 2024.