The Commodity Futures Trading Commission (CTFC) is reportedly considering taking enforcement action against the co-founder of a bankrupt cryptocurrency lender.
According to a new report from Bloomberg, the CTFC is considering charging Voyager’s ex-chief executive Stephen Ehrlich with misleading customers about the safety of their assets after he launched an investigation into the troubled company.
Anonymous sources familiar with the matter told Bloomberg that CTFC commissioners are currently voting on whether to take enforcement action against Ehrlich in the coming days.
However, the report notes that Ehrlich has not yet been formally charged with any wrongdoing, adding that the CFTC can only file civil charges.
In an email to Bloomberg, Ehrlich — Voyager’s CEO when it filed for bankruptcy in July 2022 — said he was “angry and perplexed” by the CFTC’s potential enforcement actions, calling them baseless.
As further stated by Ehrlich in the email:
“Day in and day out, Voyager worked closely with the relevant regulators. These charges appear to be one of those moments where the referees make new rules and call a foul after the match has ended. I look forward to being vindicated in court.”
In August, blockchain tracker Lookonchain discovered that Voyager had sold assets on US crypto exchange Coinbase and received around $85 million worth of stablecoin USD Coin (USDC).
Voyager went bankrupt in 2022 after Three Arrows Capital (3AC), another crypto lending company, failed to repay a loan worth hundreds of millions of dollars.
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