The Federal Trade Commission (FTC) of the United States and Voyager Digital have reached a settlement of $1.65 billion. The agreement emphasizes the increasing regulatory control in this industry and was approved by Judge Gregory Woods of the U.S. District Court for the Southern District of New York.
Voyager Digital is prohibited by the agreement from using specific marketing strategies and from providing goods and services connected to digital assets. With this move, Voyager hopes to protect customer interests in the volatile cryptocurrency market while also bringing its operations into compliance with regulatory requirements.
However, the payment has nothing to do with Voyager’s ongoing bankruptcy case. In July 2022, the company filed for Chapter 11 protection, claiming $1 billion to $10 billion in liabilities. In an earlier decision, the court authorized a repayment schedule that allowed Voyager clients to get back about 35.72% of their claims.
Voyager and its affiliates are now required to assist the FTC to the fullest extent possible. This involves offering testimony, taking part in court proceedings, and taking part in the discovery phase. In addition, Voyager is required to provide a report on its compliance activities to the FTC for review within a year.
Voyager and its former leaders still have unresolved legal challenges following the FTC’s deal with the corporation. The former CEO of Voyager, Stephen Ehrlich, is the target of separate legal actions from the CFTC and the FTC. Ehrlich has refuted the allegations made against him in these lawsuits that he made deceptive claims regarding the handling and security of client monies.
This settlement demonstrates the increased attention that regulators are paying to the cryptocurrency space, particularly with regard to consumer protection and financial regulation compliance. This case is comparable to another one where the FTC ordered Celsius, a different cryptocurrency loan firm, to pay $4.7 billion. The results of these court cases are being watched carefully since it is anticipated that they will have a big impact on how cryptocurrency markets and investing techniques develop in the future.