1 year ago
U.S. regulators person targeted erstwhile Voyager Digital CEO Steve Ehrlich with lawsuits claiming helium engaged successful fraud and deliberately misrepresented his customers’ authorities protections.
The Commodity Futures Trading Commission (CFTC) and Federal Trade Commission (FTC) announced related actions against Ehrlich connected Thursday.
The CFTC accused him of defrauding customers by misleading them astir the spot of the institution and doing concern without due registrations. The FTC said helium lied astir customers’ funds being protected by the Federal Deposit Insurance Corp.
“Ehrlich and Voyager lied to Voyager customers,” said Ian McGinley, the CFTC’s enforcement director, successful a connection astir the suit, which calls for restitution, penalties and manufacture bans for the erstwhile executive. “While representing they would dainty customers’ integer plus commodities safely and responsibly, down the scenes, they took shockingly reckless risks with their customers’ assets, starring to Voyager’s bankruptcy and immense lawsuit losses.”
The FTC besides settled with the company successful an statement that permanently bans Voyager from handling customers’ assets, hitting it with a $1.65 cardinal judgement that is suspended to let the steadfast to proceed its liquidation to wage backmost its customers.
“This enactment reminds companies and individuals: Don’t play accelerated and escaped with claims astir FDIC insurance,” said Samuel Levine, manager of the FTC’s Bureau of Consumer Protection, successful a statement.
After Voyager collapsed successful July 2022, the crypto lender archetypal negotiated a doomed woody to merchantability to FTX, and past different statement for merchantability to Binance fell apart. Former Voyager customers whitethorn not retrieve much than 36% of their assets, according to estimates.
Edited by Aoyon Ashraf.
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