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Voyager Digital’s CEO faces two new lawsuits as CFTC, FTC take action

Press Releases Crypto News AMB-Crypto Voyager Digital’s CEO faces two new lawsuits as CFTC, FTC take action

Voyager Digital’s co-founder finds himself in double trouble with CFTC and FTC filing lawsuit against him
The collapse crypto lending firm is also barred from ever handling customer funds as part of a deal with the FTC

The past few days have been rough for crypto founders, the ones that oversaw the collapse of their firm. The latest c-suite executive to make headlines is Voyager Digital CEO and co-founder – Steve Ehrlich.

Today, on 12 October, the Commodity Futures Trading Commission (CFTC) announced that it filed a complaint against Ehrlich. However, speculations of such an action hit headlines earlier this month.

The popular crypto-lending platform filed for bankruptcy in July 2022 and was among the first group that fell in the wake of Terra’s collapse. Post bankruptcy filing, the firm tried to repay its customers through a Binance buyout. However, the plan collapsed after multiple US regulatory interventions, resulting in self-liquidation.

CFTC details Voyager Digital CEO’s role in its collapse

The CFTC complaint against Ehrlich alleges fraud and “registration failures in connection with the Voyager digital asset platform and Voyager’s operation of an unregistered commodity pool“. The regulator also claimed that the CEO “falsely touted” that the lending platform was a “safe haven”, promising high returns. Notably, the returns went as high as 12% for certain cryptocurrencies.

Moreover, the regulator placed the entire blame for bad investment decisions on Ehrlich. The CFTC stated that the CEO took the decision to loan customer funds to “high-risk parties,” believing it would get high returns. It Go to Source to See Full Article
Author: Priya NV

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