TechFlow reported, according to The Block, the U.S. Commodity Futures Trading Commission (CFTC) has charged Stephen Ehrlich, co-founder of Voyager Digital, with fraud. The CFTC stated that Ehrlich and his company lied to customers, concealing the true financial condition of the crypto lending firm as Voyager began to collapse. "While claiming they would safeguard customers' digital asset commodities safely and responsibly, they secretly exposed customer assets to shocking risks, leading to Voyager's bankruptcy and massive customer losses," said Ian McGinley, Director of Enforcement at the CFTC, in a statement on Thursday.
The CFTC said Ehrlich promised customers high-yield returns, sometimes as high as 12%. To fund these high returns, Ehrlich and Voyager transferred "billions of dollars worth of customer digital assets as 'loans' to risky third parties."
Meanwhile, the U.S. Federal Trade Commission (FTC) announced on Thursday a settlement with Voyager, permanently banning it from handling consumer assets. The FTC also accused Ehrlich of lying about whether customer accounts were insured by the Federal Deposit Insurance Corporation. Ehrlich did not agree to settle with the FTC, so the case against him will continue in federal court.
