The FTC reaches a settlement with Voyager Digital, permanently banning it from handling consumer assets

ChainCatcher News: The U.S. Federal Trade Commission (FTC) has announced a settlement with the bankrupt cryptocurrency lending company Voyager Digital, permanently banning it from handling consumer assets.

The FTC pointed out that Voyager and its former CEO Stephen Ehrlich misled consumers, resulting in over $1 billion in cryptocurrency losses for consumers after the company's collapse.

Under the settlement agreement, Voyager and its affiliates will be permanently prohibited from offering, marketing, or promoting any products or services related to asset deposits, exchanges, investments, or withdrawals. Additionally, the companies have agreed to pay a $1.65 billion judgment, but this amount will be suspended to allow the remaining assets to be returned to consumers in the bankruptcy proceedings.

Furthermore, the FTC has also filed a lawsuit against Stephen Ehrlich, accusing him of falsely claiming that customer accounts were insured by the Federal Deposit Insurance Corporation (FDIC) and "safe." Since Ehrlich has not agreed to settle with the FTC, his case will be heard in federal court.

Previously, the U.S. Commodity Futures Trading Commission (CFTC) voted to file a lawsuit against Voyager co-founder Stephen Ehrlich, accusing him of violating derivatives regulations and misleading users about the safety of their assets.