The Federal Trade Commission (FTC) has asked the Southern District Court of New York to grant a proposed Order for Permanent Injunction, Monetary Judgment and Other Relief against Voyager Digital. The relevant documents were filed with the Court on November 22, 2023.
Entry of the Stipulated Order will end the lawsuit against Voyager Digital, LLC, Voyager Digital Holdings, Inc. and Voyager Digital Ltd.
Pursuant to the proposed order, judgment in the amount of $1,650,000,000 is entered in favor of the Commission against the Corporate Defendants, jointly and severally, as monetary relief. The liability of the Corporate Defendants for this judgment shall be joint and several with any other Defendants to the extent hereafter ordered.
The Debtor Defendants will not object to the admission of Proof of Claim No. 12033 filed by the FTC against Voyager Digital, LLC and Proof of Claim No. in the amount of $1,650,000,000.
“Corporate Defendants” means Voyager Digital, LLC, Voyager Digital Holdings, Inc., Voyager Digital Ltd., and their successors and assigns.
“Debtor Defendants” means Voyager Digital, LLC, Voyager Digital Holdings, Inc. and Voyager Digital Ltd.
The proposed order also provides that the Corporate Defendants are permanently barred from advertising, marketing, promoting, offering or distributing or assisting in advertising, marketing, promoting, offering or distributing any product or service that can be used for deposit, exchange , investment or acquisition of assets, either directly or through an intermediary.
It is also proposed that I Corporate Defendants, Corporate Defendants’ officers, agents, employees and attorneys and all other persons in active concert or participation with any of them, whether acting directly or indirectly, in connection with the promotion or offer for sale of any product or service are permanently limited and ordered to misrepresent or assist others to misrepresent, expressly or impliedly, the benefits of the Defendant’s products or services or any other material fact about the Defendant’s products or services, such as total cost. any material limitations, restrictions or conditions; or any material aspect of its performance, effectiveness, nature or central features.
Voyager commenced a voluntary Chapter 11 proceeding in July 2022. As part of that proceeding, the Company and its principal operating subsidiaries filed voluntary Chapter 11 petitions for reorganization in the U.S. Bankruptcy Court for the Southern District of New York.