US CFTC Reportedly Considering Enforcement Action Against Former Voyager CEO
U.S. regulators are currently considering taking enforcement action against Stephen Ehrlich, the former CEO of the bankrupt crypto lender Voyager, Bloomberg reported citing sources familiar to the matter.
The U.S. Commodity Futures Trading Commission's (CFTC) Enforcement Division has internally recommended charging Stephen Ehrlich following an investigation into Voyager's actions.
Voyager resumed withdrawals in June this year.
The regulatory agency alleges that Ehrlich violated CFTC rules by misleading customers regarding the security of their assets.
The CFTC is considering seeking fines and other non-criminal penalties in response to alleged misconduct.
However, npt all CFTC investigations result in enforcement actions.
The matter is currently awaiting a decision from CFTC commissioners, who are said to be voting on whether to approve enforcement actions against Ehrlich in the coming days.
Voyager made headlines in August 2022 when it disclosed that the CFTC had requested information related to its business operations, customer interactions, and lending activities as part of its bankruptcy case.
At the time of Voyager's bankruptcy filing, Stephen Ehrlich, who was the CEO, had not been formally accused of any wrongdoing.
In response to the impending civil lawsuits, Ehrlich expressed his frustration, stating that he was "angry and confused" by the baseless accusations brought forward by the government.
He also indicated his intention to vehemently contest the allegations.
However, reports suggest that during Ehrlich's tenure, Voyager transferred substantial sums, totaling hundreds of millions of dollars, to high-risk entities, including cryptocurrency hedge funds Three Arrows Capital and Alameda Research.
The CFTC's
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