In a breaking development, the CFTC has filed a lawsuit against Voyager’s Former CEO, Stephen Ehrlich. The CFTC found that the cryptocurrency company violated derivatives regulations before its bankruptcy. Accordingly, he was evaluating the accusations against Ehrlich.
CFTC sues former CEO of cryptocurrency company Voyager
U.S. regulators announced Thursday that Voyager Digital Ltd. It alleged that the company’s co-founder and former chief executive violated derivatives rules while he was head of the bankrupt cryptocurrency lender. The Commodity Futures Trading Commission (CFTC) said in a lawsuit filed against Stephen Ehrlich in US federal court in New York that he and Voyager misled customers that the platform was a “safe haven” for their digital assets.
Previously, CFTC investigators concluded that Ehrlich violated agency rules. Additionally, the regulator’s commissioners had voted to indict the former CEO for enforcement action. With the news, the token price started to decline. At press time, Voyager Token (VGX) was down 5.84% on a daily basis, falling to $0.1094. On a weekly basis, the cryptocurrency lost 6.97% in value.
CFTC’s charges against Voyager Digital CEO Stephen Ehrlich
cryptokoin.com As we reported on Oct. 6, CFTC investigators found that Voyager Digital co-founder Stephen Ehrlich violated derivatives regulations before the company’s bankruptcy last year. Accordingly, the CFTC’s enforcement division found Ehrlich provided misleading information to customers regarding the safety of their assets. So he made an internal recommendation to formally charge him with violating derivatives regulations. Following the recommendations, CFTC Commissioners discussed whether sanctions would be taken against Ehrlich in the near future. In the process, Ehrlich said that he cooperated with the relevant authorities before the collapse of the bankrupt cryptocurrency lender. He also stated that the case in question made him “angry and surprised”. In this regard, Ehrlich made the following statement:
These allegations appear to be one of those times when referees make new rules and call fouls after the game is over. I look forward to being vindicated in court.
Meanwhile, Voyager’s bankruptcy administrator, Paul Hage, has approved a settlement agreement with the Federal Trade Commission (FTC). This settlement addresses the FTC’s allegations that Voyager provided false information to previous customers regarding the availability of Federal Deposit Insurance Corporation (FDIC) protection.
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