U.S. judge approves Voyager Digital's $1.65 billion settlement with FTC

U.S. federal judge Gregory Woods approved an order requiring crypto lending company Voyager Digital and its affiliates to pay a $1.65 billion settlement to the U.S. Federal Trade Commission (FTC). The judge said the order will largely not affect bankruptcy court proceedings, according to documents filed in the U.S. District Court for the Southern District of New York. It is reported that Voyager filed for bankruptcy protection in July 2022. As part of the settlement, Voyager will be "permanently restrained and prohibited" from marketing or providing products or services related to digital assets. Under the settlement, parties related to Voyager must cooperate with FTC officials, including testifying at hearings, trials and discovery. After one year, Voyager must also report on its compliance and submit to oversight by the FTC. (Cointelegraph) Earlier in October, the U.S. FTC announced that it had reached a settlement with bankrupt crypto lending company Voyager Digital, permanently banning it from handling consumer assets. The FTC alleges that Voyager and its former CEO Stephen Ehrlich misled consumers, who lost more than $1 billion in cryptocurrency after the company collapsed. The proposed settlement with Voyager and its affiliates would permanently prohibit the companies from offering, marketing or promoting any products or services that can be used to deposit, exchange, invest or withdraw any assets. The companies also agreed to a $1.65 billion judgment, which will be stayed to allow Voyager to return remaining assets to consumers during bankruptcy proceedings. Additionally, the FTC filed a lawsuit against Stephen Ehrlich, accusing him of falsely representing that customer accounts were insured by the Federal Deposit Insurance Corporation (FDIC) and “safe.” Ehrlich has not yet agreed to a settlement with the FTC, so the case against him will be heard in federal court.