Former CEO of Voyager Digital May Face Enforcement Action from CFTC
The United States Commodity Futures Trading Commission (CFTC) is reportedly considering taking enforcement action against Stephen Ehrlich, the former CEO of crypto lending firm Voyager Digital. The CFTC staff has concluded an investigation into Ehrlich’s alleged violation of U.S. derivatives regulations prior to Voyager’s bankruptcy filing in July 2022.
Ehrlich expressed his frustration with the claims, stating that it feels like the referees are making new rules and calling foul after the game has ended.
Voyager Under Scrutiny and Ongoing Bankruptcy Proceedings
Voyager Digital, currently in the midst of bankruptcy proceedings, was already under scrutiny by the U.S. Federal Trade Commission for its deceptive and unfair marketing practices related to cryptocurrencies. In May, a bankruptcy court approved Voyager’s plan to repay customers, and the case is still ongoing.
CFTC’s Regulatory Actions in the Crypto Space
The CFTC has several pending cases against crypto firms that could have significant implications for the U.S. regulatory landscape. However, most of the enforcement actions in 2023 have been brought by the Securities and Exchange Commission. Binance and its CEO, Changpeng Zhao, have been pushing for authorities to dismiss a CFTC lawsuit filed in March. Additionally, numerous executives at Binance.US have left the exchange due to regulatory scrutiny.
Hot Take: CFTC Considers Action Against Former Voyager Digital CEO
The former CEO of Voyager Digital, Stephen Ehrlich, may face enforcement action from the United States Commodity Futures Trading Commission (CFTC). The CFTC staff has concluded an investigation into Ehrlich’s alleged violation of U.S. derivatives regulations prior to Voyager’s bankruptcy filing. Voyager Digital, currently in bankruptcy proceedings, has also faced scrutiny from the U.S. Federal Trade Commission for deceptive marketing practices. This potential enforcement action is part of the CFTC’s efforts to regulate the crypto space, although most of the regulatory actions this year have been led by the Securities and Exchange Commission. Binance and its CEO have been challenging a CFTC lawsuit, while regulatory scrutiny has led to executive departures at Binance.US.
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