The Commodity Futures Trading Commission (CFTC) has taken legal action against Stephen Ehrlich, the former CEO of Voyager Digital Ltd., Voyager Digital Holdings, Inc., and Voyager Digital, LLC, collectively known as Voyager, a now-bankrupt entity. The complaint, filed in the U.S. District Court for the Southern District of New York, accuses Ehrlich of fraud and registration failures related to the Voyager digital asset platform.
Simultaneously, the Federal Trade Commission (FTC) filed separate charges against Ehrlich and Voyager for making false assertions regarding the insurance of consumer deposits by the Federal Deposit Insurance Corporation (FDIC).
Ehrlich and Voyager allegedly deceived customers by promoting their platform as a “safe haven” for digital asset investments, promising high-yield returns of up to 12%. In reality, they engaged in risky practices that ultimately led to Voyager’s bankruptcy, leaving customers with substantial losses.
The CFTC’s legal action seeks various remedies, including restitution, disgorgement, civil monetary penalties, permanent trading and registration bans, and a permanent injunction to prevent further violations of the Commodity Exchange Act (CEA) and CFTC regulations.
Director of Enforcement Ian McGinley stated, “Ehrlich and Voyager broke their trust with customers while acting in capacities that required CFTC registration, which they failed to obtain.”
The complaint alleges that from February to July 2022, Ehrlich and Voyager misled customers about the safety and financial health of their platform, leading customers to collectively store more than $2 billion worth of digital asset commodities with them. However, they engaged in high-risk practices, transferring customer assets to third parties without the required CFTC registration.
