The U.S. Commodity Futures Trading Commission (CFTC) is reportedly considering charges against Stephen Ehrlich, the ex-CEO and co-founder of Voyager Digital. The investigation centers around alleged derivatives regulations violations and the provision of misleading information to customers.
Allegations of Violations and Misleading Information
According to Bloomberg, the CFTC’s enforcement division has internally recommended accusing Stephen Ehrlich of violating derivatives regulations. Specifically, it is alleged that Ehrlich provided customers with misleading information about the safety of their assets. The CFTC Commissioners are currently deliberating on whether to proceed with an enforcement action.
Stephen Ehrlich, through an email statement to Bloomberg, expressed that Voyager Digital had cooperated with relevant authorities prior to the company’s bankruptcy. Ehrlich appeared to be surprised and frustrated by the anticipated lawsuit. He stated,
“These allegations appear to be one of those times where the referees are making new rules and calling foul after the game has ended. I look forward to being vindicated in court.”
Settlement Deal and FTC Allegations
Bloomberg also reported that Voyager Digital’s bankruptcy administrator, Paul Hage, has endorsed a settlement deal with the Federal Trade Commission (FTC). The settlement focuses on allegations made by the FTC regarding the provision of inaccurate information to previous customers, specifically related to the availability of Federal Deposit Insurance Corp. (FDIC) protection.
Voyager Digital’s History and Industry Impact
Voyager Digital was once one of the largest lenders in the cryptocurrency industry. However, like several other businesses with similar models, it faced significant challenges during the market downturn and experienced several high-profile collapses.
The investigation by the CFTC into alleged derivatives regulations violations and the provision of misleading information by Stephen Ehrlich, the former CEO of Voyager Digital, continues to unfold. As the industry strives for increased transparency and regulatory compliance, cases such as these shed light on the importance of maintaining integrity in the cryptocurrency space.