CFTC weighs enforcement action against former Voyager Digital CEO: Report

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Officers at the US Commodity Futures Buying and selling Fee (CFTC) are reportedly contemplating an enforcement motion towards Stephen Ehrlich, the previous CEO of crypto lending agency Voyager Digital. 

Based on an Oct. 6 Bloomberg report, CFTC workers are considering taking motion towards Ehrlich following an investigation concluding the previous CEO violated U.S. derivatives laws previous to Voyager’s chapter submitting. The agency filed for Chapter 11 protection in July 2022 amid the crypto market downturn. 

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Ehrlich was reportedly “angered and perplexed” by the claims:

“These allegations look like a kind of occasions the place the referees are making new guidelines and calling foul after the sport has ended.”

Associated: Creditors for bankrupt Voyager Digital billed $5.1M in legal fees

Voyager, nonetheless in the course of chapter proceedings, was already under scrutiny from the U.S. Federal Commerce Fee “for [its] misleading and unfair advertising of cryptocurrency to the general public.” A chapter courtroom approved Voyager’s plan to repay clients in Might, and the case was ongoing on the time of publication. 

The CFTC has several cases pending towards crypto corporations which have the potential to make waves throughout the U.S. regulatory house, however lots of the enforcement actions in 2023 have been introduced by the Securities and Change Fee. Binance and its CEO, Changpeng Zhao, have pushed for authorities to dismiss a CFTC lawsuit filed in March, whereas many executives at Binance.US have left the change amid regulatory scrutiny.

Journal: US enforcement agencies are turning up the heat on crypto-related crime