The US Commodity Futures Trading Commission (CFTC) has taken legal action against Voyager Digital and its former CEO, Stephen Ehrlich.\u00a0<\/p>\n
The CFTC filed a complaint <\/a>in the US District Court for the Southern District of New York, alleging fraud and registration failures related to the operation <\/a>of the Voyager digital asset platform and an unregistered commodity pool.<\/p>\n According to the CFTC<\/a>, Ehrlich falsely marketed the Voyager platform as a safe haven for high-yield returns, deceiving customers to purchase and store<\/a> digital assets.\u00a0<\/p>\n Per the filing, Voyager allegedly took \u201creckless risks\u201d with customers\u2019 assets<\/a>, leading to Voyager\u2019s bankruptcy and significant customer losses. The lawsuit seeks various penalties, including restitution, disgorgement, civil monetary penalties, permanent trading and registration bans, and a permanent injunction against further violations of the Commodity Exchange Act.<\/p>\n In a separate but related action, the Federal Trade Commission (FTC) has charged <\/a>Voyager and Stephen Ehrlich with violating the FTC Act and the Gramm-Leach-Bliley Act.\u00a0<\/p>\n The FTC alleges that the company falsely claimed customers\u2019 accounts were insured by the Federal Deposit Insurance Corporation (FDIC) and misled consumers about the safety of their deposits.<\/p>\n The FTC\u2019s complaint states that Voyager enticed customers to deposit funds by assuring them of the safety of their assets on the platform. However, Voyager was neither a bank nor a financial institution, and the deposits were not eligible for FDIC insurance.\u00a0<\/p>\n The FTC alleges that consumers suffered significant losses<\/a> when Voyager experienced financial difficulties, including being locked out of their accounts and losing over $1 billion in cryptocurrency assets.<\/p>\n Voyager and its affiliates will be permanently banned from handling consumers\u2019 assets and offering related services as part of a proposed settlement.\u00a0<\/p>\n The companies have also agreed to a judgment of $1.65 billion, which will be suspended to allow Voyager to return the remaining assets to consumers during the bankruptcy proceedings.\u00a0<\/p>\n Stephen Ehrlich, however, has not agreed to a settlement, and the FTC\u2019s case against him will proceed in federal court.<\/p>\n The FTC\u2019s complaint further alleges that Ehrlich transferred millions of dollars<\/a> to his wife, Francine Ehrlich, including funds linked to the alleged unlawful conduct.\u00a0<\/p>\n The proposed settlement also prohibits Voyager and its affiliates from misrepresenting product benefits, making false representations to obtain financial information, and disclosing consumer information without consent.<\/p>\n Both regulatory bodies are seeking to hold Voyager, Stephen Ehrlich, and other involved parties accountable for their alleged deceptive practices and violations of financial regulations.\u00a0<\/p>\n Featured image from Shutterstock, chart from TradingView.com\u00a0<\/p>","protected":false},"excerpt":{"rendered":" <\/p>\n The US Commodity Futures Trading Commission (CFTC) has taken legal action against Voyager Digital and its former CEO, Stephen Ehrlich.\u00a0<\/p>\n The CFTC filed a complaint <\/a>in the US District Court for the Southern District of New York, alleging fraud and registration failures related to the operation <\/a>of the Voyager digital asset platform and an unregistered commodity pool.<\/p>\n According to the CFTC<\/a>, Ehrlich falsely marketed the Voyager platform as a safe haven for high-yield returns, deceiving customers to purchase and store<\/a> digital assets.\u00a0<\/p>\n Per the filing, Voyager allegedly took \u201creckless risks\u201d with customers\u2019 assets<\/a>, leading to Voyager\u2019s bankruptcy and significant customer losses. The lawsuit seeks various penalties, including restitution, disgorgement, civil monetary penalties, permanent trading and registration bans, and a permanent injunction against further violations of the Commodity Exchange Act.<\/p>\n In a separate but related action, the Federal Trade Commission (FTC) has charged <\/a>Voyager and Stephen Ehrlich with violating the FTC Act and the Gramm-Leach-Bliley Act.\u00a0<\/p>\n The FTC alleges that the company falsely claimed customers\u2019 accounts were insured by the Federal Deposit Insurance Corporation (FDIC) and misled consumers about the safety of their deposits.<\/p>\n The FTC\u2019s complaint states that Voyager enticed customers to deposit funds by assuring them of the safety of their assets on the platform. However, Voyager was neither a bank nor a financial institution, and the deposits were not eligible for FDIC insurance.\u00a0<\/p>\nVoyager Faces Legal Action For \u2018Misleading Customers\u2019<\/h2>\n
Stephen Ehrlich Rejects Settlement\u00a0<\/h2>\n
Voyager Faces Legal Action For \u2018Misleading Customers\u2019<\/h2>\n