The United States Commodity Futures Trading Commission (CFTC) has filed a complaint against former CEO of Voyager Digital, Stephen Ehrlich, accusing him of fraud and failure to register the bankrupt crypto lender with the agency. The CFTC alleges that Ehrlich and Voyager Digital deceived customers by falsely promoting the platform as a safe and trustworthy place to purchase and store assets, while promising high returns of up to 12%. As a result, customers deposited over $2 billion worth of cryptocurrency assets on Voyager, which were then loaned to high-risk third-party entities. One of these entities defaulted on its repayment, leading to Voyager’s liquidity crisis and eventual bankruptcy filing in July 2022, leaving customers owed over $1.7 billion. The Federal Trade Commission (FTC) has also reached a settlement with Voyager, which includes a $1.65 billion fine and a permanent prohibition on handling customer funds. The FTC is separately suing Ehrlich for misleading customers by falsely claiming that their deposited funds were insured by the Federal Deposit Insurance Corporation (FDIC). Ehrlich has not agreed to a settlement with the FTC, and the regulator intends to proceed with its case against him in federal court.

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Information	Details
Geography	North America
Countries	🇺🇸
Sentiment	negative
Relevance Score	1
People	Stephen Ehrlich
Companies	CFTC, Voyager Digital, Federal Trade Commission (FTC), Federal Reserve, Federal Deposit Insurance Corporation (FDIC)
Currencies	Koda Cryptocurrency
Securities	None