TechFlow news: The U.S. Federal Trade Commission (FTC) has announced a settlement with the bankrupt cryptocurrency lending firm Voyager Digital, permanently banning it from handling consumer assets.
The FTC stated that Voyager and its former CEO, Stephen Ehrlich, misled consumers, resulting in over $1 billion worth of lost cryptocurrency after the company's collapse.
Under the settlement, Voyager and its affiliates are permanently prohibited from offering, marketing, or promoting any products or services related to depositing, exchanging, investing in, or withdrawing assets. Additionally, the companies have agreed to a $1.65 billion judgment, which will be suspended to allow remaining assets to be returned to consumers through bankruptcy proceedings.
Separately, the FTC has 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 yet agreed to settle with the FTC, his case will proceed to federal court.
Previously, the U.S. Commodity Futures Trading Commission (CFTC) voted to file a lawsuit against Voyager co-founder Stephen Ehrlich, alleging violations of derivatives regulations and misleading users about the safety of their assets.
