Odaily Planet Daily News According to an official announcement, the U.S. Federal Trade Commission (FTC) announced that it has reached a settlement with bankrupt crypto lending company Voyager Digital, permanently banning it from handling consumer assets. The FTC alleges that Voyager and its former CEO Stephen Ehrlich misled consumers, who lost more than $1 billion in cryptocurrency after the company collapsed.
The proposed settlement with Voyager and its affiliates would permanently prohibit the companies from offering, marketing or promoting any products or services that can be used to deposit, exchange, invest or withdraw any assets. The companies also agreed to a $1.65 billion judgment, which will be stayed to allow Voyager to return remaining assets to consumers during bankruptcy proceedings.
Additionally, the FTC filed a lawsuit against Stephen Ehrlich, accusing him of falsely representing that customer accounts were insured by the Federal Deposit Insurance Corporation (FDIC) and “safe.” Ehrlich has not yet agreed to a settlement with the FTC, so the case against him will be heard in federal court.
Earlier news, the U.S. Commodity Futures Trading Commission (CFTC) voted to prosecute Voyager co-founder Stephen Ehrlich, accusing him of violating derivatives regulations and misleading users about the safety of their assets.