- The Federal Trade Commission (FTC) reached a $1.65 billion settlement with crypto lending firm Voyager Digital, which filed for bankruptcy in July 2022.
- Under the settlement, Voyager is permanently banned from marketing or providing any digital asset products or services.
- The agreement requires Voyager to cooperate with the FTC on matters like testimony and discovery, and report on compliance after one year.
The Federal Trade Commission (FTC) reached a settlement with crypto lending firm Voyager Digital in October 2022. A federal judge has now signed off on the order, requiring Voyager to pay $1.65 billion in monetary relief to the FTC.
Background on Voyager Digital
Voyager Digital is a crypto lending company that filed for bankruptcy in July 2022. The firm disclosed liabilities between $1 billion and $10 billion at the time. In May 2022, a bankruptcy court approved a plan allowing Voyager users to receive a percentage of their claims from the lending firm.
Details of the FTC Settlement
As part of the FTC settlement, Voyager Digital will be permanently banned from marketing or providing any products or services related to digital assets. The order will not significantly impact Voyager’s ongoing bankruptcy proceedings.
Under the agreement, parties associated with Voyager must cooperate with FTC officials on matters like testimony and discovery. After one year, Voyager must also report on its compliance with the proceedings.
Ongoing Legal Issues
The settlement does not resolve other legal issues facing Voyager Digital and its former CEO. In October 2022, the Commodity Futures Trading Commission (CFTC) filed a lawsuit against the former CEO alleging misleading statements about customer funds. The former CEO claimed Voyager consistently communicated with regulators and denied allegations at the time.
The FTC settlement comes after the agency ordered crypto lending firm Celsius to pay $27 million in fees for allegedly misusing customer assets. The FTC has been ramping up enforcement efforts against crypto companies engaging in unlawful practices.