Investigators at the Commodity Futures Trading Commission have concluded that the co-founder of Voyager Digital Ltd. broke rules ahead of the crypto lender’s bankruptcy last year, according to a report from Bloomberg News.
CFTC staff in its enforcement division recommended internally that the agency accuse Stephen Ehrlich of breaking derivatives rules by misleading customers about the safety of their assets following an investigation. Now, the five CFTC commissioners are voting on whether to approve an enforcement action against him within the next few days, Bloomberg reported.
The CFTC did not immediately respond to a request for comment from The Block. Ehrlich sent an emailed statement to Bloomberg and said he was “angered and perplexed” by the government’s anticipated civil claims and called them unfounded.
“Day in and day out, Voyager worked closely with the relevant regulators,” he said to Bloomberg. “These allegations appear to be one of those times where the referees are making new rules and calling foul after the game has ended. I look forward to being vindicated in court.”
Voyager’s woes
The crypto lender filed for Chapter 11 bankruptcy protection over a year ago following an extended period of volatility in the industry. The downturn was sparked in May 2022 with the collapse of the Terra blockchain — which wiped $40 billion in value off the market.
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