A commissioner from the United States Commodity Futures Trading Commission (CFTC) has criticized Voyager Digital for its mishandling of customer funds, resulting in the loss of billions of dollars. Commissioner Kristin Johnson accused Voyager of misleading practices, neglecting warning signs, and failing to conduct proper due diligence to protect customers. She stated that Voyager turned a blind eye to its subsidiary investment firms’ actions with customer assets and failed to demand transparency. The CFTC and the Federal Trade Commission have filed lawsuits against Voyager’s former CEO, Stephen Ehrlich, alleging fraud and registration failures. The FTC has reached a proposed settlement with Voyager, prohibiting the firm from offering certain services. Voyager and its affiliates have agreed to a $1.65 billion judgment to repay customers in bankruptcy proceedings. Another CFTC commissioner, Caroline Pham, expressed the regulator’s commitment to taking action against cryptocurrency firms that misuse customer funds. However, Pham believes the CFTC may have exceeded its authority in interpreting what constitutes a commodity pool operator. Voyager filed for Chapter 11 bankruptcy in July 2022, with debts ranging from $1 billion to $10 billion owed to over 100,000 creditors.
This News Article was automatically generated by Bob the Bot (AI)
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | North America |
| Countries | 🇺🇸 |
| Sentiment | negative |
| Relevance Score | 1 |
| People | Stephen Ehrlich, Kristin Johnson, Caroline Pham |
| Companies | Federal Trade Commission (FTC), Voyager Digital, Chapter 11 bankruptcy, United States Commodity Futures Trading Commission (CFTC) |
| Currencies | None |
| Securities | None |
