Officials at the US Commodity Futures Trading Commission (CFTC) are reportedly considering enforcement action against Steven Ehrlich, the former CEO of cryptocurrency lending company Voyager Digital.
According to a Bloomberg report from October 6, the employees of the Commodity Futures Trading Commission (CFTC). Taking into account the Taking action against Ehrlich after an investigation found that the former CEO violated US derivatives regulations before Voyager declared bankruptcy. The company filed for Chapter 11 protection in July 2022 amid a downturn in the cryptocurrency market.
Ehrlich was reportedly “angry and confused” by the allegations:
He added: “These allegations appear to be one of those times when referees make new rules and announce a foul after the match is over.”
Related: Creditors of bankrupt Voyager Digital paid $5.1 million in legal fees
Voyager, which was still in the middle of bankruptcy proceedings, was already under scrutiny by the US Federal Trade Commission “because [its] Deceptive and unfair marketing of cryptocurrencies to the public.” The bankruptcy court approved Voyager’s plan to repay customers in May, and the case was ongoing at press time.
The CFTC has several pending cases against cryptocurrency companies that have the potential to make waves across the US regulatory landscape, but several enforcement actions in 2023 have been filed by the SEC. Binance and its CEO Changpeng Zhao have lobbied authorities to dismiss a lawsuit filed by the Commodity Futures Trading Commission (CFTC) in March, while several Binance.US executives have left the exchange amid regulatory scrutiny.
magazine: US law enforcement agencies are stepping up efforts to combat cryptocurrency-related crimes