The US Commodity Futures Trading Commission (CFTC) and the Federal Trade Commission (FTC) have taken legal action against Stephen Ehrlich, the former CEO of the now-bankrupt crypto platform Voyager, for his many false representations to customers.
The confirmation came yesterday (Thursday) after the FTC settled with Voyager, imposing a permanent ban from handling customers' funds.
In the lawsuit against Ehrlich, the FTC highlighted his false claims that the Federal Deposit Insurance Corporation (FDIC) insured the customers' accounts, creating a fake aura of safety even when bankruptcy was approaching. Ehrlich controlled three firms: Voyager Digital Ltd., Voyager Digital Holdings, Inc., and Voyager Digital, LLC, collectively known as Voyager.
According to the CFTC's complaint, Ehrlich and Voyager defrauded customers by misrepresenting the safety and financial health of the Voyager digital asset platform from at least February 2022 through July 2022. The platform promises high-yield returns, up to 12 percent, on stored digital assets, promoting itself as a "safe heaven." At its peak, the platform held over $2 billion of digital assets.
In reality, the platform pooled billions of dollars worth of customers' digital assets and wrote them as loans to high-risk counterparties. In 2022, Voyager...
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