U.S. CFTC Ruling on Stephen Ehrlich
In a recent ruling, the U.S. Commodity Futures Trading Commission (CFTC) has mandated that Stephen Ehrlich, the co-founder and former CEO of the now-defunct cryptocurrency lending firm Voyager Digital Ltd., pay $750,000 to compensate customers deceived by the company’s practices.
Details of the Ruling
According to a consent order issued by a federal court in New York, Ehrlich did not admit to or deny the accusations against him. The ruling imposes a three-year prohibition on his involvement in commodity trading, among other constraints aimed at preventing further misconduct.
Agency’s Commitment to Accountability
Charles Marvine, the acting director of the CFTC, highlighted that this development reflects the agency’s commitment to ensuring accountability within the burgeoning digital asset market, with a primary focus on securing restitution for harmed investors and restricting future misconduct by Ehrlich.
Background of the Case
Back in October 2023, the CFTC took legal action against both Ehrlich and Voyager, alleging that they engaged in fraudulent practices while promoting their digital asset platform as a “safe harbor” for investors. The commission claims they lured clients with assurances of high returns while irresponsibly lending out billions of customer dollars to risky third-party ventures.
At the time, Ehrlich publicly expressed frustration and disappointment regarding these allegations. Earlier, he had also settled with the Federal Trade Commission (FTC) over accusations of making false statements related to the company’s operations.
