- Stephen Ehrlich, former CEO of Voyager Digital, is facing potential legal trouble from the US Commodity Futures Trading Commission (CFTC) due to allegations of violating U.S. derivatives regulations.
- The CFTC has completed an investigation into Ehrlich’s actions before Voyager Digital’s bankruptcy filing in July 2022.
- Ehrlich has expressed frustration and believes he is unfairly singled out for actions taken by others in the cryptocurrency industry.
The former CEO of Voyager Digital, Stephen Ehrlich, is facing potential legal trouble from the United States Commodity Futures Trading Commission (CFTC). The CFTC has completed an investigation into Ehrlich’s actions prior to Voyager Digital’s bankruptcy filing in July 2022. They are preparing to accuse him of violating U.S. derivatives regulations. This development was reported by Bloomberg.
Ehrlich has expressed frustration in response to these allegations, suggesting that it feels like the rules are being changed after the game has already ended. He believes that he is being unfairly singled out for actions taken by others in the cryptocurrency industry. Ehrlich also highlighted his unblemished record in regulated markets throughout his career.
This situation with the CFTC’s potential enforcement action against Ehrlich is taking place alongside Voyager’s ongoing bankruptcy proceedings. The company had previously come under scrutiny from the U.S. Federal Trade Commission for deceptive marketing practices related to cryptocurrencies.
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It’s important to note that the CFTC has several pending cases against various cryptocurrency firms, and these cases could have significant implications for the regulatory landscape in the United States. However, it’s interesting to observe that, in 2023, most enforcement actions have been initiated by the Securities and Exchange Commission (SEC).
In a related development, Binance and its CEO, Changpeng Zhao, have been actively contesting a CFTC lawsuit filed in March. Additionally, regulatory scrutiny has led to several executives leaving Binance.US. Currently, CFTC commissioners are in the process of voting on whether to proceed with the enforcement action against Stephen Ehrlich in the coming days.