CFTC considers enforcement action against former Voyager Digital CEO

Author: Turner Wright, Cointelegraph; Compiler: Songxue, Golden Finance

Officials with the U.S. Commodity Futures Trading Commission (CFTC) are reportedly considering taking enforcement action against Stephen Ehrlich, the former CEO of crypto lending company Voyager Digital.

According to a Bloomberg report on October 6, the U.S. Commodity Futures Trading Commission (CFTC) staff is considering taking action against Ehrlich after an investigation concluded that the former CEO violated U.S. derivatives regulations before Voyager filed for bankruptcy. The company filed for Chapter 11 protection in July 2022 amid a downturn in the cryptocurrency market.

Ehrlich was reportedly "angry and confused" by the claims:

"These allegations appear to be one of those situations where referees make new rules and call fouls after the game."

Voyager remains in bankruptcy proceedings and is under scrutiny by the U.S. Federal Trade Commission “for its deceptive and unfair marketing of cryptocurrencies to the public.” The bankruptcy court approved Voyager's plan to repay customers in May, and the case was still ongoing at press time.

The CFTC has several cases pending against cryptocurrency companies that have the potential to make waves in the U.S. regulatory landscape, but many of the enforcement actions in 2023 will be brought by the SEC. Binance and its CEO Changpeng Zhao have urged authorities to dismiss a lawsuit filed by the U.S. Commodity Futures Trading Commission (CFTC) in March, while many Binance.US executives have also left the exchange amid regulatory scrutiny.

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