In a recent development, a federal judge has approved an order that will require crypto lending firm Voyager Digital and its affiliates to pay $1.65 billion in monetary relief. The payment will be made to the United States Federal Trade Commission (FTC).
Monetary relief refers to a financial remedy or compensation awarded to a party in a legal or regulatory context. In this case, Voyager Digital is the party responsible for paying a financial settlement or payment to the FTC as a resolution to the legal matters or regulatory issues at hand.
As per the terms of the settlement, Voyager is now permanently restricted from marketing or offering products and services related to digital assets.
The judge, Gregory Woods, mentioned that this order is not expected to significantly impact the bankruptcy court proceedings, where Voyager filed for Chapter 11 protection in July 2022, revealing liabilities ranging from $1 billion to $10 billion.
The terms of the settlements also contain a clause where firms associated with Voyager are ordered to provide testimony at hearings and report any discovery they make regarding the case. Voyager is also given directives to report on its compliance with the ongoing proceedings after one year.
This legal action comes in the wake of parallel lawsuits filed by the U.S. Commodity Futures Trading Commission (CFTC) and the FTC against former Voyager CEO Stephen Ehrlich, alleging misleading statements about the use and safety of customer funds.
In July, the FTC ordered another crypto lending firm, Celsius, to pay $4.7 billion in fees, accusing its co-founders of misappropriating user assets and providing misleading information to investors. The former CEO of Celsius, Alex Mashinsky, was arrested by U.S. officials and is currently free on bail until his trial, scheduled for September 2024.
