A federal judge has approved an order requiring the cryptocurrency lending company Voyager Digital and its subsidiaries to pay a $1.65 billion fine to the U.S. Federal Trade Commission (FTC).
In a November 28 filing in the Southern District Court of New York, Judge Gregory Woods ordered Voyager to pay the $1.65 billion following an agreement between the lending firm and the FTC announced in October. As part of the agreement, Voyager will be “permanently restrained and enjoined” from marketing or providing products or services related to digital assets.
According to Judge Woods, the order would largely not affect the bankruptcy proceedings where Voyager filed for Chapter 11 protection in July 2022, disclosing debts ranging from $1 billion to $10 billion. In May, the court approved an initial plan that allowed Voyager users to receive 35.72% of their total requested compensation from the lending company.
Under the settlement agreement, parties related to Voyager must cooperate with FTC officials, including providing testimony at hearings and trials. After one year, Voyager must also report on its compliance with litigation procedures under the supervision of the FTC.
In October, the U.S. Commodity Futures Trading Commission and the FTC concurrently filed lawsuits against former Voyager CEO Stephen Ehrlich, alleging he made false statements about the use and safety of customer funds. At the time, Ehrlich claimed Voyager’s team had “consistent communication and collaboration” with regulatory agencies, denying most of the allegations.