US CFTC Orders Former CEO of Crypto Lending Company Voyager to Pay $750,000 to Defrauded Clients

According to Bloomberg, the US Commodity Futures Trading Commission (CFTC) issued a statement on Monday ordering Stephen Ehrlich, co-founder and former CEO of the bankrupt crypto lending platform Voyager Digital Ltd., to pay $750,000 to defrauded clients. Ehrlich, who neither admitted nor denied the charges, has been banned from commodity trading for three years and faces other restrictions. CFTC Acting Director Charles Marvine stated that the settlement highlights their important role in the digital asset space, with compensating victims and limiting the defendant's ability to cause future harm being their core mission. In October 2023, CFTC sued Ehrlich and Voyager, accusing them of operating a fraudulent digital asset platform, misleading clients by claiming it was a 'safe harbor,' and attracting clients with high returns while lending billions of dollars of client assets to high-risk third parties. Ehrlich had previously settled false statement charges with the Federal Trade Commission (FTC).

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