The Federal Trade Commission (FTC) and Commodity Futures Trading Commission (CFTC) File Charges Against Former Voyager CEO
The former CEO of Voyager, Stephen Ehrlich, is facing charges filed by both the Federal Trade Commission (FTC) and Commodity Futures Trading Commission (CFTC). The FTC alleges that Ehrlich falsely claimed that Voyager accounts were insured by the Federal Deposit Insurance Corporation (FDIC), even though the company was on the brink of bankruptcy. The agency clarifies that Voyager is not a bank or financial institution, and therefore deposits made to the platform were not covered by the FDIC.
In a parallel suit, the CFTC is charging Ehrlich with fraud and registration failures. The regulator accuses Ehrlich and Voyager of misrepresenting the safety and financial health of the platform, as well as failing to register as an associated person of a commodity pool operator (CPO). Voyager collapsed in July 2022, leaving customers with losses exceeding $1.7 billion.
Hot Take: Regulatory Crackdown on Deceptive Practices in Crypto
The charges brought against Stephen Ehrlich by the FTC and CFTC highlight the regulatory crackdown on deceptive practices within the crypto industry. As cryptocurrencies gain more mainstream attention, it becomes crucial for regulators to protect consumers from fraudulent activities. This case serves as a reminder that investors should exercise caution when dealing with crypto platforms, ensuring they verify claims made by companies before investing their funds. With increased scrutiny from regulatory bodies, it is expected that stricter regulations will be implemented to safeguard investors and maintain trust in the industry.
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