Co-founder of Voyager Digital Stephen Ehrlich faces charges from the Commodity Futures Trading Commission for alleged fraud and failing to register with the agency.
The Commodity Futures Trading Commission (CFTC) has leveled accusations against Stephen Ehrlich, the co-founder of Voyager Digital. According to the CFTC, Ehrlich is being charged with fraud and failure to register with the commission.
The core of the accusations suggests that Ehrlich and his company presented misleading information to their clients regarding Voyager’s financial status. The CFTC alleges that as Voyager was on the verge of collapse, misleading statements were made to obfuscate the crypto lender’s precarious financial health.
CFTC Enforcement Director Ian McGinley commented on the matter, stating, “Behind promises of safety and responsibility, the company took significant risks with their clients’ digital assets.”
Such actions allegedly culminated in Voyager’s bankruptcy, with clients incurring substantial financial losses.
Between February and July 2022, both Ehrlich and Voyager are said to have misrepresented the safety and stability of the Voyager digital platform, thus defrauding their customers. Promising alluring high-yield returns, sometimes reaching up to 12 percent, Ehrlich and Voyager are alleged to have pooled customer funds. The CFTC suggests these pooled funds, amounting to billions, were transferred as ‘loans’ to third parties deemed high-risk.
In a coinciding development, the Federal Trade Commission has announced a settlement wit
Go to Source to See Full Article
Author: Bralon Hill
Tip BTC Newswire with Cryptocurrency
Donate Bitcoin to BTC Newswire
Donate Bitcoin Cash to BTC Newswire
Donate Ethereum to BTC Newswire
Donate Litecoin to BTC Newswire
Donate Monero to BTC Newswire
Donate ZCash to BTC Newswire
