Stephen Ehrlich—former CEO of defunct crypto lender Voyager Digital—was slapped with a lawsuit by the Commodities and Futures Trading Commission (CFTC) on Thursday for misleading the platform’s customers about the safety of their assets.

The complaint accuses the founder of both fraud and registration failures related to its operation of an “unregistered commodity pool”—a classification the CFTC believes applies to many cryptocurrencies, such as Bitcoin (BTC).

“Ehrlich and Voyager falsely touted the Voyager platform as a “safe haven” to earn high-yield returns to induce customers to purchase and store digital asset commodities,” wrote the CFTC in a statement on Thursday.

The agency now seeks permanent registration and trading bans on Ehrlich, alongside restitution, disgorgement, and civil monetary penalties. When Voyager filed for bankruptcy in July, it owed its U.S. customers and creditors $1.7 billion according to the CFTC.

In May, the judge overseeing Voyager’s bankruptcy proceeding cleared the company to repay $1.3 billion to creditors.

In a parallel action on Thursday, the Federal Trade Commission (FTC) Go to Source to See Full Article
Author: Andrew Throuvalas

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