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© Reuters. FILE PHOTO: Representations of cryptocurrencies and Voyager Digital emblem are seen on this illustration taken, July 7, 2022. REUTERS/Dado Ruvic/Illustrations
NEW YORK/WASHINGTON (Reuters) -The U.S. Commodity Futures Buying and selling Fee on Thursday sued former CEO and co-founder of Voyager Digital Ltd Stephen Ehrlich for fraudulently soliciting participation in and working a digital asset platform in a fashion that led to the agency’s demise.
The CFTC accused Voyager and Ehrlich of promising a protected haven for purchasers’ digital belongings saved on their platform – at occasions valued at extra $2 billion – whereas taking “extreme dangers” with them behind the scenes. That led to the agency’s chapter and owing U.S. prospects greater than $1.7 billion, regulators mentioned of their lawsuit, submitting in federal court docket in New York.
Ehrlich couldn’t be reached instantly for remark and Voyager didn’t reply instantly to a request for remark.
The Federal Commerce Fee additionally introduced a settlement with Voyager that can completely ban it from dealing with customers’ belongings. It’s submitting go well with in opposition to Ehrlich for falsely claiming that prospects’ accounts have been insured by the Federal Deposit Insurance coverage Company (FDIC) and have been “protected,” at the same time as the corporate was approaching chapter.
The FTC’s criticism additionally names Stephen Ehrlich’s spouse, Francine Ehrlich, as a reduction defendant.
Voyager was one among a number of crypto lenders to break down in 2022, together with Celsius Community and BlockFi, after crypto costs plummeted amid rising rates of interest and worsening macroeconomic situations.
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