Voyager Digital co-founder sued by US regulators for fraud
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.
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View Details» «The talented management team at Voyager created and maintained our platform in full compliance with the existing regulatory structure. Our team consistently communicated and worked closely with our regulators,» he said.
Voyager did not respond to a request for comment.
«While representing they would treat customers' digital asset commodities safely and responsibly, behind the scenes, they took shockingly reckless risks with their customers' assets, leading to Voyager's
