Voyager Digital was ‘no better than a house of cards’ — CFTC commissioner

cointelegraph.com:

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.

Statement of @CFTCjohnson regarding @cftc's charges against Voyager's chief executive officer. Learn more: https://t.co/OiBvOoCuV6

In an Oct. 12 statement, Commissioner Kristin Johnson took aim at Voyager for misleading practices, ignoring warning signs and “bare-bones due diligence,” which failed to protect customers.

The commodities commissioner said Voyager turned a blind eye to what its subsidiary investment firms were doing with its own customer funds:

“Instead of demanding that investment firms that received customer assets offer greater levels of transparency, Voyager shirked the long-established expectations for custodians and simply dispatched customer funds with little effort to preserve the same,” she added.

Johnson’s comments came after the regulator, along with the Federal Trade Commission, filed parallel lawsuits against Voyager’s former CEO, Stephen Ehrlich on Oct. 12.

The CFTC lawsuit alleges Ehrlich and Voyager conducted fraud and “registration failures” over its platform and its “unregistered commodity pool.”

It has been frustrating watching lots of obvious malfeasance happening in crypto land and enforcement actions only target low-rent relatively tiny scam operations while the industry was building industrial scale predation machines.

This is not that pattern!

The FTC, on the other hand, reached a proposed settlement with Voyager, banning the firm from offering, marketing or promoting any product or service that could be used to deposit, exchange, invest or withdraw any assets, according to an Oct. 12 statement.

Voyager