Officials on the United States Commodity Futures Trading Commission (CFTC) are reportedly contemplating an enforcement action against Stephen Ehrlich, the former CEO of crypto lending agency Voyager Digital.
According to an Oct. 6 Bloomberg report, CFTC employees are considering taking action against Ehrlich following an investigation concluding the former CEO violated U.S. derivatives rules previous to Voyager’s chapter submitting. The agency filed for Chapter 11 protection in July 2022 amid the crypto market downturn.
Ehrlich was reportedly “angered and perplexed” by the claims:
“These allegations appear to be one of those times where the referees are making new rules and calling foul after the game has ended.”
Related: Creditors for bankrupt Voyager Digital billed $5.1M in legal fees
Voyager, nonetheless in the course of chapter proceedings, was already under scrutiny from the U.S. Federal Trade Commission “for [its] deceptive and unfair marketing of cryptocurrency to the public.” A chapter court docket approved Voyager’s plan to repay prospects in May, and the case was ongoing on the time of publication.
The CFTC has several cases pending against crypto companies which have the potential to make waves throughout the U.S. regulatory area, however most of the enforcement actions in 2023 have been introduced by the Securities and Exchange Commission. Binance and its CEO, Changpeng Zhao, have pushed for authorities to dismiss a CFTC lawsuit filed in March, whereas many executives at Binance.US have left the trade amid regulatory scrutiny.
Magazine: US enforcement agencies are turning up the heat on crypto-related crime
