The Federal Commerce Fee (FTC) and Commodity Futures Buying and selling Fee (CFTC) have filed prices in opposition to the previous CEO of Voyager, Stephen Ehrlich.
In an announcement, the FTC says it filed a swimsuit in opposition to Ehrlich for falsely claiming that Voyager accounts have been insured by the Federal Deposit Insurance coverage Company (FDIC) and that buyer belongings have been protected despite the fact that the agency was already dealing with a looming chapter.
The company says deposits made to Voyager weren’t coated by the FDIC as a result of the crypto platform is neither a financial institution nor a monetary establishment.
“The FTC workers grievance alleges that Voyager and Stephen Ehrlich violated the FTC Act’s prohibition on misleading practices and the Gramm-Leach-Bliley Act’s prohibition on acquiring a buyer’s monetary info by false, fictitious, or fraudulent statements. The grievance additionally alleges that Stephen Ehrlich transferred tens of millions of {dollars} to his spouse Francine, together with funds that may be traced on to the alleged illegal conduct.”
The CFTC can be charging Ehrlich with fraud and registration failures in a parallel swimsuit. The regulator says Ehrlich and Voyager misrepresented the security and monetary well being of Voyager in addition to claimed the platform would function with the identical stage of rigor and belief as conventional monetary establishments.
The commodities watchdog says Ehrlich additionally didn’t register as an related individual of a commodity pool operator (CPO) regardless of soliciting funds for the Voyager pool.
Says CFTC’s director of enforcement, Ian McGinley,
“Ehrlich and Voyager lied to Voyager prospects. Whereas representing they might deal with prospects’ digital asset commodities safely and responsibly, behind the scenes, they took shockingly reckless dangers with their prospects’ belongings, resulting in Voyager’s chapter and big buyer losses.
Amplifying their fraud, Ehrlich and Voyager broke their belief with prospects whereas performing in capacities that required CFTC registration, which they didn’t receive.”
Voyager left shoppers with losses of greater than $1.7 billion when it collapsed in July of final 12 months.
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