Former Voyager Digital CEO Faces Legal Actions for Fraudulent Activities
The former CEO and co-founder of Voyager Digital, Steve Ehrlich, is facing legal actions from U.S. regulators. The Commodity Futures Trading Commission (CFTC) and the Federal Trade Commission (FTC) have accused Ehrlich of engaging in fraudulent activities and providing false information about the level of government protections offered to customers.
Ehrlich’s Response to the Allegations
In response to the allegations, Ehrlich expressed his outrage and dismay at the claims made by the government. He stated that he is reviewing the claims but believes he is being used as a scapegoat for the misconduct of others in the crypto industry.
Ehrlich Misled Customers About Voyager’s Financial Stability
The CFTC’s complaint alleges that Ehrlich misled customers about the financial stability of Voyager Digital and conducted business without the necessary registrations. The FTC also claims that Ehrlich lied to customers about their funds being protected by the Federal Deposit Insurance Corp.
CFTC Commissioner Disagrees with Lawsuit
One of the CFTC’s commissioners, Caroline Pham, voiced her disagreement with the agency’s lawsuit. She argued that the interpretation that Voyager should have registered as a commodity pool operator is an overreach beyond their statutory authority.
Voyager Prohibited from Managing Customers’ Assets
The FTC has reached a settlement with Voyager Digital, permanently prohibiting them from managing customers’ assets. The settlement includes a suspended $1.65 billion judgment, allowing the firm to conduct its liquidation process to reimburse customers.
Hot Take: Former Voyager CEO Faces Legal Actions for Fraudulent Activities
The former CEO of Voyager Digital, Steve Ehrlich, is facing legal actions from U.S. regulators for engaging in fraudulent activities and providing false information to customers. The allegations include misleading customers about the company’s financial stability and falsely claiming that their funds were protected by the Federal Deposit Insurance Corp.
Ehrlich has expressed his outrage at the claims and believes he is being used as a scapegoat for the misconduct of others in the crypto industry. The legal actions highlight the importance of honest representations and the consequences of making false claims about government protections.
The settlement reached with Voyager Digital prohibits them from managing customers’ assets and imposes a suspended $1.65 billion judgment. Former Voyager customers now face the reality that they may only recover a fraction of their assets.
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