U.S. judge signs settlement agreement for Voyager Digital to pay $1.65 billion to FTC

ChainCatcher news, according to Cointelegraph, U.S. Federal Judge Gregory Woods has ordered Voyager to pay the Federal Trade Commission (FTC) $1.65 billion after announcing a settlement with the FTC in October. As part of the agreement, Voyager will be "permanently restricted and prohibited" from marketing or offering products or services related to digital assets.

According to the settlement agreement, parties associated with Voyager must cooperate with FTC officials, including testifying at hearings, trials, and evidence disclosures. One year later, Voyager must also report on its compliance procedures and accept oversight from the commission.

The judge stated that the order will not significantly affect the litigation process in Voyager's bankruptcy court, as Voyager filed for protection under Chapter 11 of the Bankruptcy Code in July 2022, disclosing liabilities between $1 billion and $10 billion. In May, the court approved a plan allowing Voyager users to receive 35.72% of their claims first. In October, the Commodity Futures Trading Commission and the Federal Trade Commission filed parallel lawsuits against Voyager's former CEO Stephen Ehrlich, accusing him of making misleading statements regarding the use and safety of customer funds.