As known from:
known from Coinwireknown from Benchknown from Coinindex
  • About CryptoGmblr.com
Contains commercial content
Cryptogambling / Judge approves $1.65B settlement between Voyager Digital, FTC

Judge approves $1.65B settlement between Voyager Digital, FTC

Publish Date: 30/11/2023
Stock Photo, tags: judge voyager - cdn.pixabay.com

Stock Photo – cdn.pixabay.com

A federal judge in the Southern District of New York has approved an order for crypto lending company Voyager Digital and its affiliates to pay $1.65 billion to the Federal Trade Commission (FTC).

The settlement, announced in October and confirmed by Judge Gregory Woods on November 28, includes a permanent restriction preventing Voyager from marketing or offering digital asset-related products or services.

Judge Woods said that the order would not significantly affect the ongoing proceedings in bankruptcy court. Voyager filed for Chapter 11 protection in July 2022, revealing liabilities between $1 billion to $10 billion. In May, the court authorized a plan enabling Voyager users to receive an initial 35.72 percent of their claims from the lending firm.

As part of the agreement, individuals linked to Voyager must collaborate with FTC officials, including providing testimony at hearings, trials and discovery sessions. Additionally, Voyager must report its compliance with the terms after a year, which will be monitored by the commission.

In October, the U.S. Commodity Futures Trading Commission (CFTC) and the FTC filed separate lawsuits against former Voyager CEO Stephen Ehrlich. It alleged he had made misleading statements about the use and safety of customer funds.

The allegations include fraud and failure to register related to the platform’s unregistered commodity pool. The commission intends to pursue restitution, disgorgement, civil penalties and permanent trading and registration bans.

“Ehrlich and Voyager lied to Voyager customers,” said CFTC enforcement director Ian McGinley. “While representing they would treat customers’ digital asset commodities safely and responsibly, behind the scenes, they took shockingly reckless risks with their customers’ assets, leading to Voyager’s bankruptcy and huge customer losses. When their business began to collapse, they continued lying to their customers, concealing Voyager’s true financial health.”

However, Ehrlich emphasized that Voyager’s team had continuous communication and close collaboration with regulators, mostly denying the allegations.

In July, the FTC directed crypto lending company Celsius to pay $4.7 billion in fees. It accused the company’s co-founders of mishandling user assets and providing false information to investors about the platform’s services. Former Celsius CEO Alex Mashinsky was arrested by U.S. officials and is currently out on bail pending his trial, which is set to commence in September 2024.

Chapter 11 filing as recovery plan, says Voyager

Voyager filed for bankruptcy under Chapter 11 in the Southern District Court of New York as part of the company’s recovery plan.

In a July statement, Voyager revealed that if implemented, the plan would enable clients to regain access to their accounts, and Voyager would “return value to customers.”

Ehrlich outlined the recovery plan in a social media post, emphasizing that customers holding cryptocurrency in their accounts would receive a combination of cryptocurrency, proceeds from the Three Arrows Capital (3AC) recovery, new company shares and Voyager tokens.

He confirmed that customers holding U.S. dollars in their accounts can access those funds once a reconciliation and fraud prevention process with Metropolitan Commercial Bank is finished.

Ehrlich said Chapter 11 was the best choice. He ensured that this action would safeguard platform assets and guarantee Voyager’s ongoing operations.

FTC fines bankrupt Celsius Network

On July 13, the FTC announced a $4.7 billion fine against the bankrupt crypto lender Celsius Network. However, the fine will be put on hold to allow Celsius to return its remaining assets to consumers during the bankruptcy process.

Celsius and its affiliates will be banned from advertising or providing any service related to depositing, exchanging, investing or withdrawing assets.

Besides Mashinsky, the FTC accused co-founders Shlomi Leon and Hanoch Goldstein of promoting the platform as a secure space for customers to deposit cryptocurrency while misusing more than $4 billion in customers’ assets in their complaint.

The FTC also accused Celsius of issuing $1.2 billion in unsecured loans, falsely claiming to have a $750 million user insurance policy and not having proper methods to monitor its assets and debts until late 2021.

Top Online Casinos
Top Casinos Bonuses
Stake.us
Stake.us
Stake.us Review
4.6/5
McLuck
McLuck
McLuck Review
4.6/5
High5Casino
High5Casino
High5Casino Review
4.5/5
Sweeptastic
Sweeptastic
Sweeptastic Review
4.5/5
Wow Vegas
Wow Vegas
Wow Vegas Review
4.5/5
Stake.us
Stake.us Bonus
$55 Stake Cash + 260K Gold Coins + 5% Rakeback
T&Cs apply
4.6/5
McLuck
McLuck Bonus
7.500 Gold Coins + 2,5 Sweepstakes Coins
T&Cs apply
4.6/5
High5Casino
High5Casino Bonus
5 Sweeps Coins + 250 Game Coins + 600 Diamonds
T&Cs apply
4.5/5
Sweeptastic
Sweeptastic Bonus
Get 70,000 Lucky Coins and 44 Sweeps Coins
T&Cs apply
4.5/5
Wow Vegas
Wow Vegas Bonus
1.75M WOW Coins + 35 Free Sweepstake Coins
T&Cs apply
4.5/5
Latest News
Charles Hoskinson forecasts Altcoin season showdown: ADA vs. DOGE
Cardano (ADA) Faces Dual Meme Coin Competition where ...
Top 5 AI cryptocurrencies ready to thrive during the next bull market
New crypto ventures merge the groundbreaking capabilities of ...
Top Crypto Exchange Sites
Crypto Exchange Guide
  • Crypto Exchanges
  • Betting Exchange
Top Brands
Top Bonuses
Stake.us
Stake.us
Stake.us Review
4.6/5
McLuck
McLuck
McLuck Review
4.6/5
High5Casino
High5Casino
High5Casino Review
4.5/5
Sweeptastic
Sweeptastic
Sweeptastic Review
4.5/5
Wow Vegas
Wow Vegas
Wow Vegas Review
4.5/5
Stake.us
Stake.us Bonus
$55 Stake Cash + 260K Gold Coins + 5% Rakeback
T&Cs apply
4.6/5
McLuck
McLuck Bonus
7.500 Gold Coins + 2,5 Sweepstakes Coins
T&Cs apply
4.6/5
High5Casino
High5Casino Bonus
5 Sweeps Coins + 250 Game Coins + 600 Diamonds
T&Cs apply
4.5/5
Sweeptastic
Sweeptastic Bonus
Get 70,000 Lucky Coins and 44 Sweeps Coins
T&Cs apply
4.5/5
Wow Vegas
Wow Vegas Bonus
1.75M WOW Coins + 35 Free Sweepstake Coins
T&Cs apply
4.5/5

Players must be 21 years of age or older or reach the minimum age for gambling in their respective state and located in jurisdictions where online gambling is legal. Please play responsibly. Bet with your head, not over it. If you or someone you know has a gambling problem, and wants help, call or visit: (a) the Council on Compulsive Gambling of New Jersey at 1-800-Gambler or www.800gambler.org; or (b) Gamblers Anonymous at 855-2-CALL-GA or www.gamblersanonymous.org.

Trading financial products carries a high risk to your capital, especially trading leverage products such as CFDs. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

This site is using Cloudflare and adheres to the Google Safe Browsing Program. We adapted Google's Privacy Guidelines to keep your data safe at all times.

21+NCPGCloudflareSSLco² neutral
Close
Players accepted in the US US Flag
Stake.us Exclusive Bonus
$55 Stake Cash + 260K Gold Coins + 5% Rakeback
Promo Code
Go to Stake.us
Visit Site
T&Cs apply, 18+
Payment Methods
Bitcoin
Litecoin
Ethereum
Dogecoin
Highlights
  • Exclusive promo code: CRYPTGAMBL
  • Play Stake Originals games for free
  • Get free Stake Cash daily just by logging in
Stake Originals
Dice
Crash
Plinko
Mines
×
Your Bonus Code:
The bonus offer of was already opened in an additional window. If not, you can open it also by clicking the following link:
Visit Site