US Commodities Regulator Mulling Enforcement Action Against Co-Founder of Bankrupt Crypto Lender Voyager: Report

By The Daily Hodl - 8 months ago - Reading Time: 2 minutes

US Commodities Regulator Mulling Enforcement Action Against Co-Founder of Bankrupt Crypto Lender Voyager: Report

The Commodity Futures Trading Commission (CTFC) is reportedly contemplating taking enforcement action against the co-founder of a bankrupt crypto lender.

According to a new report by Bloomberg, the CTFC is considering charging Stephen Ehrlich, the ex-chief executive of Voyager, of misleading customers about the safety of their assets after launching an investigation into the troubled firm.

Anonymous sources familiar with the issue told Bloomberg that CTFC commissioners are currently voting on whether or not to take enforcement actions against Ehrlich within the next few days.

However, the report notes that Ehrlich has not yet formally been accused of any wrongdoing, also adding that the CFTC can only file civil charges.

In an email to Bloomberg, Ehrlich – who was the CEO of Voyager when it filed for bankruptcy in July 2022 – said that he was “angered and perplexed” by the CFTC’s possible enforcement actions, calling them unfounded.

As further stated by Ehrlich in the email,

“Day in and day out, Voyager worked closely with the relevant regulators. These allegations appear to be one of those times where the referees are making new rules and calling foul after the game has ended. I look forward to being vindicated in court.”

In August, blockchain tracker Lookonchain found that Voyager had been selling assets on top US-based crypto exchange Coinbase and received about $85 million worth of the stablecoin USD Coin (USDC).

Voyager went bankrupt in 2022 after Three Arrows Capital (3AC), another crypto lending firm, failed to pay back a loan worth hundreds of millions of dollars.

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Original source: The Daily Hodl