The legal action followed reports staff at the commission had completed an investigation concluding Stephen Ehrlich violated U.S. derivatives regulations.
The United States Commodity Futures Trading Commission (CFTC) has filed a complaint against Stephen Ehrlich, the former CEO of crypto lending firm Voyager Digital.
In an Oct. 12 announcement, the CFTC said it had filed a lawsuit in U.S. District Court for the Southern District of New York against Ehrlich and Voyager for alleged fraud and “registration failures” connected to the platform and its “unregistered commodity pool”. The commission said it planned to seek restitution, disgorgement, civil monetary penalties, and permanent trading and registration bans.
“Ehrlich and Voyager falsely touted the Voyager platform as a ‘safe haven’ to earn high-yield returns to induce customers to purchase and store digital asset commodities,” said the CFTC.
This is a developing story, and further information will be added as it becomes available.