U.S. regulators have targeted former Voyager Digital CEO Stephen Ehrlich with lawsuits claiming he engaged in fraud and deliberately misrepresented his customers’ government protections.
U.S. regulators sued the former CEO and co-founder of Voyager Digital Ltd on Thursday, saying the executive and the crypto lender misled customers about the safety of their assets while taking "excessive risks" that led to the firm's demise. The U.S. Commodity Futures Trading Commission (CFTC) accused Stephen Ehrlich, who helped launch Voyager in 2018, of committing fraud from February to July 2022. Ehrlich and Voyager promised customers a safe haven for digital assets stored on their platform - at times valued at more than $2 billion - while "recklessly" loaning to high-risk counterparties, including four firms that are also now bankrupt, the CFTC said in a lawsuit filed in federal court in New York.
NEW YORK/WASHINGTON (Reuters) -U.S. regulators sued the former CEO and co-founder of Voyager Digital Ltd on Thursday, saying the executive and the crypto lender misled customers about the safety of their assets while taking "excessive risks" that led to the firm's demise. The U.S. Commodity Futures Trading Commission (CFTC) accused Stephen Ehrlich, who helped launch Voyager in 2018, of committing fraud from February to July 2022. Ehrlich and Voyager promised customers a safe haven for digital assets stored on their platform - at times valued at more than $2 billion - while "recklessly" loaning to high-risk counterparties, including four firms that are also now bankrupt, the CFTC said in a lawsuit filed in federal court in New York.