The United States Commodity Futures Trading Commission (CFTC) has filed a complaint against former CEO of Voyager Digital, Stephen Ehrlich, accusing him of fraud and failing to register the bankrupt crypto lender with the agency. The CFTC alleges that Ehrlich and Voyager Digital misled customers by promoting their platform as trustworthy and a safe haven for assets, while promising high returns of up to 12%. However, Ehrlich and Voyager Digital loaned customers’ assets to high-risk third-party entities, causing a liquidity crisis and ultimately leading to Voyager’s bankruptcy with over $1.7 billion owed to users.
CFTC’s Director of Enforcement, Ian McGinley, stated that Ehrlich and Voyager took reckless risks with customers’ assets, misleading them and concealing Voyager’s true financial situation. The CFTC is seeking civil penalties, disgorgement, restitution, and permanent bans on trading and registration.
In a related Development, the Federal Trade Commission (FTC) announced a settlement with Voyager Digital. The FTC is also suing Ehrlich for misleading customers by falsely claiming that their funds were insured by the Federal Deposit Insurance Corporation (FDIC), which was not the case for cryptocurrency assets. The FTC reached a proposed settlement with Voyager and its affiliates, which includes a payment of $1.65 billion and a permanent prohibition on handling customer funds. However, Ehrlich has not agreed to a settlement with the FTC.
Overall, the CFTC and FTC’s actions against Stephen Ehrlich and Voyager Digital highlight the alleged fraudulent practices and failure to register with regulatory agencies, resulting in significant losses for customers..
#CFTC #Files #Lawsuit #Voyager #Digital #CEO #Alleged #Fraud
CFTC’s Director of Enforcement, Ian McGinley, stated that Ehrlich and Voyager took reckless risks with customers’ assets, misleading them and concealing Voyager’s true financial situation. The CFTC is seeking civil penalties, disgorgement, restitution, and permanent bans on trading and registration.
In a related Development, the Federal Trade Commission (FTC) announced a settlement with Voyager Digital. The FTC is also suing Ehrlich for misleading customers by falsely claiming that their funds were insured by the Federal Deposit Insurance Corporation (FDIC), which was not the case for cryptocurrency assets. The FTC reached a proposed settlement with Voyager and its affiliates, which includes a payment of $1.65 billion and a permanent prohibition on handling customer funds. However, Ehrlich has not agreed to a settlement with the FTC.
Overall, the CFTC and FTC’s actions against Stephen Ehrlich and Voyager Digital highlight the alleged fraudulent practices and failure to register with regulatory agencies, resulting in significant losses for customers..
#CFTC #Files #Lawsuit #Voyager #Digital #CEO #Alleged #Fraud
