Stephen Ehrlich News

A decision that is of great significance has been handed down by the United States District Court for the Southern District of New York. A judge named Gregory Woods gave his approval to an order that required Voyager Digital and its affiliates to make a payment of $1.65 billion to the Federal Trade Commission (FTC) of the United States of America. This ruling, which was submitted on November 28, 2023, comes after a settlement was negotiated between Voyager and the Federal Trade Commission in October. This settlement marks a significant turning point in the regulatory control of bitcoin lending companies.

A federal judge has approved an order requiring crypto lending firm Voyager Digital and its affiliates to pay $1.65 billion in monetary relief to the United States Federal Trade Commission (FTC).

The Federal Trade Commission (FTC) on October 12, 2023, disclosed a settlement with the beleaguered cryptocurrency firm, Voyager Digital, post allegations of misleading consumers regarding the safety of their deposits. The settlement emerges amid a broader crackdown on deceptive practices in the rapidly evolving crypto sector.

On October 12, 2023, a significant regulatory maneuver unfolded as the Commodity Futures Trading Commission (CFTC) filed a complaint in the U.S. District Court for the Southern District of New York against Stephen Ehrlich, the former CEO of the now-bankrupt Voyager Digital entities. Ehrlich is charged with fraud and registration violations concerning the digital asset platform's operation of an unregistered commodity pool between February and July 2022.

A commissioner for the United States Commodity Futures Trading Commission has slammed Voyager Digital for its mistakes that eventually led to the loss of billions of dollars in customer funds.

Voyager Digital Ltd on Thursday, saying the executive and the crypto lender misled customers about the safety of their assets while taking «excessive risks» that led to the firm's demise. The U.S. Commodity Futures Trading Commission (CFTC) accused Stephen Ehrlich, who helped launch Voyager in 2018, of committing fraud from February to July 2022. Ehrlich and Voyager promised customers a safe haven for digital assets stored on their platform — at times valued at more than $2 billion — while «recklessly» loaning to high-risk counterparties, including four firms that are also now bankrupt, the CFTC said in a lawsuit filed in federal court in New York. Voyager was one of several crypto firms to collapse in 2022, along with Celsius Network and BlockFi, after crypto prices plummeted amid interest rates and worsening macroeconomic conditions. In a statement, Ehrlich said he was «outraged and deeply dismayed» by the allegations.

The United States Commodity Futures Trading Commission (CFTC) has filed a complaint against Stephen Ehrlich, the former CEO of crypto lending firm Voyager Digital.

Officials at the United States Commodity Futures Trading Commission (CFTC) are reportedly considering an enforcement action against Stephen Ehrlich, the former CEO of crypto lending firm Voyager Digital. 

U.S. regulators are currently considering taking enforcement action against Stephen Ehrlich, the former CEO of the bankrupt crypto lender Voyager, Bloomberg reported citing sources familiar to the matter. 

(Reuters) — Investigators at the U.S. Commodity Futures Trading Commission's enforcement division have concluded that the co-founder of Voyager Digital broke derivatives regulations before the failed crypto lender plunged into bankruptcy last year, Bloomberg News reported on Friday.

Scammers set their sights on Voyager Digital customers during the month-long window when they were able to withdraw some portion of their funds from the bankrupt crypto brokerage, Bloomberg reported, citing Darren Azman, a lawyer for the firm. Law enforcement has been notified of the situation, he added.

Voyager Digital has preferred not sue its top executives for incompetence, in spite of their role in approving a huge loan to Three Arrows Capital (3AC) without adequate due diligence. That loan was a key element leading to Voyager Digital’s bankruptcy. Court papers filed Oct. 17 show that a Voyager Digital internal special committee has proposed that CEO Stephen Ehrlich and chief commercial officer (formerly chief financial officer) Evan Psaropolous keep their jobs and not be sued.

Crypto lenders such as Voyager boomed during the COVID-19 pandemic.

Voyager Digital Ltd Chief Financial Officer Ashwin Prithipaul is preparing to step down from his role within months of his appointment at the crypto lender that filed for bankruptcy in July. The company said on Friday the finance head would resign after a «transition period» to pursue other opportunities, and that Chief Executive Officer Stephen Ehrlich will head the role in the interim. Crypto lenders such as Voyager boomed during the COVID-19 pandemic, drawing depositors with high interest rates and easy access to loans rarely offered by traditional banks. But inflation and subsequent rate hikes by the U.S. Federal Reserve led to a wide sell-off in the alternative asset class that dealt a heavy blow to several companies in the sector.

Mark Cuban, the billionaire entrepreneur who has been quite active in the crypto ecosystem for the past year, is facing a class-action lawsuit over his promotions of the bankrupt crypto brokerage firm Voyager Digital.

 Voyager Digital [VGX], the United States-based crypto brokerage, is one of the companies to be liquidated due to Three Arrows Capital’s demise (3AC). In a 22 June press release, the firm stated that its investment exposure to 3AC consisted of 15,250 BTC and $350 million USDC. In a later press release dated 27 June, Voyager Digital issued a notice of default to 3AC, requesting the repayment of the already disclosed loan.

The company suffered a blow when Three Arrows Capital went bust last week, defaulting on a loan of 15,250 BTC and $350 million USDC.

Cryptocurrency broker Voyager Digital Ltd. said that it has filed for Chapter 11 bankruptcy in New York.

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Crypto lending platform Voyager Digital has filed for Chapter 11 bankruptcy in New York, proposing a reorganisation plan days after it suspended trading, deposits and withdrawals.

Crypto lender Voyager Digital files for bankruptcy