Former CEO of crypto lending firm Voyager Digital, Stephen Ehrlich, finds himself under the scrutiny of the United States Commodity Futures Trading Commission (CFTC) amid reports of potential violations of U.S. derivatives regulations.
Moreover, this development comes in the wake of Voyager Digital’s bankruptcy filing in July 2022, which had sent shockwaves through the crypto lending industry.
CFTC’s Consideration of Enforcement Action Against Voyager Digital Former CEO
According to a recent Bloomberg report, CFTC staff members are actively considering taking enforcement action against Ehrlich. The decision follows an extensive investigation that concluded Ehrlich’s involvement in activities that allegedly violated U.S. derivatives regulations, all prior to Voyager’s Chapter 11 bankruptcy filing.
The crypto lending firm sought Chapter 11 protection amid the tumultuous crypto market conditions at the time.
Ehrlich, in response to the looming allegations, expressed his frustration, stating,
“These allegations appear to be one of those times where the referees are making new rules and calling foul after the game has ended.”
His reaction underscores the complexity and evolving nature of the regulatory landscape surrounding cryptocurrencies and digital assets.
Voyager Digital Ongoing Challenges
While Voyager Digital remains entangled in bankruptcy proceedings, it is worth noting that the firm was already facing scrutiny from the U.S. Federal Trade Commission (FTC) for its alleged deceptive and unfair marketing of cryptocurrencies to the public.
Furthermore, Voyager’s bankruptcy plan, approved by a court in May, aimed to repay customers amidst the ongoing legal battles.
CFTC’s Crypto-Related Cases
The CFTC currently has several cases pending against various crypto firms, which have the potential to significantly impact the regulatory landscape in the United States. However, it’s worth noting that the majority of enforcement actions in 2023 have been initiated by the Securities and Exchange Commission (SEC).
Notably, Binance and its CEO, Changpeng Zhao, have been actively pushing for authorities to dismiss a CFTC lawsuit filed in March. Meanwhile, Binance.US has witnessed numerous executive departures amid increased regulatory scrutiny.
Lastly, the future of Voyager Digital, Stephen Ehrlich, and the broader regulatory stance on cryptocurrencies will be closely monitored as these legal proceedings continue to unfold.