US regulators weigh penalizing bankrupt crypto lender Voyager’s ex-CEO. Before the failed cryptocurrency lender went bankrupt last year, investigators with the U.S. Commodity Futures Trading Commission’s enforcement division concluded that Voyager Digital’s co-founder had violated derivatives laws, according to a story from Bloomberg News on Friday.
Following an investigation of Voyager’s actions, the regulator aims to charge Stephen Ehrlich with violating its regulations by misinforming clients about the security of their assets, the article stated, citing persons with knowledge of the situation.
In a statement, Ehrlich said, “Having spent nearly my entire career working in regulated markets, including more than 10 years at public companies, I have never had a single blemish on my record,” and claimed he was being used as a “scapegoat for the bad actions of others at different companies.”
In July of last year, Voyager declared bankruptcy, becoming a victim of the sharp price decline that had shaken the cryptocurrency industry.
The collapse of the Terra Luna stablecoin in May 2022 prompted a large fall in the value of Voyager, which prevented users from withdrawing their cryptocurrency holdings just before the company filed for bankruptcy.
Ehrlich stated, “Plainly said, we were all scammed together,” alluding to “actions of others in the crypto industry.” Additionally, he praised the Voyager team for creating the “most ethical” firm.
“I look forward to being vindicated in court,” he stated.
According to Bloomberg, “CFTC commissioners are now voting on whether to approve an enforcement action against him (Ehrlich) within days.” The CFTC did not immediately answer an inquiry for comment from Reuters.
