Former CEO of Voyager Faces CFTC Lawsuit! Allegedly Promoted Platform as High-Yield "Safe Haven"

The Commodity Futures Trading Commission (CFTC) announced yesterday that it has filed a lawsuit against former CEO of Voyager, Stephen Ehrlich, for misleading statements on the Voyager platform that have harmed thousands of users. In addition to civil penalties, the CFTC is also seeking a permanent trading and registration ban against Stephen Ehrlich.

Former CEO of Voyager Sued by CFTC

According to a press release from the CFTC, the Commodity Futures Trading Commission has filed a lawsuit against former Voyager CEO Stephen Ehrlich in the Southern District of New York, alleging fraud and registration failures by Ehrlich in the Voyager platform and unregistered commodity pool.

The CFTC alleges that Ehrlich and Voyager falsely promoted their platform as a "Safe Haven" that could generate high returns, enticing users to purchase and store digital asset commodities.

In this lawsuit, the CFTC seeks restitution, disgorgement of ill-gotten gains, civil monetary penalties, permanent trading and registration bans, as well as permanent injunctions against further violations of the Commodity Exchange Act and CFTC regulations.

CFTC's Director of Enforcement, Ian McGinley, stated:

"As Voyager’s business began to unravel, they continued to deceive customers, concealing their true financial condition, exacerbating their fraudulent conduct. Ehrlich and Voyager betrayed the trust of their customers while serving in positions that required CFTC registration and failed to meet corresponding registration requirements."

Updates on Voyager Bankruptcy

In July of last year, Voyager filed for bankruptcy protection after being impacted by 3AC's bankruptcy, with debts owed to 3AC totaling up to $650 million, leading to the suspension of deposits, withdrawals, and trading services. Despite a week of struggling, Voyager succumbed to bankruptcy and filed for protection on 7/6 in the Southern District of New York. The total number of Voyager creditors exceeds 100,000, with debts totaling up to $1.7 billion.

According to previous reports, following regulatory opposition to Binance US's acquisition of Voyager, Voyager announced on 5/5 this year that it would liquidate and cease operations. According to the document, Voyager's creditors are expected to recover approximately 36% of their original assets, with the exact percentage being 35.72%.

Full report: Voyager to Repay Debts! Binance US Acquisition Fails, Voyager Creditors Expected to Retrieve Approximately 36% of Total Assets