Image default
FeaturedNewsRegulation

Legal Scandal Hits Voyager Digital and its Former CEO

Voyager Digital, a cryptocurrency lending company, has found itself in the middle of a legal scandal. Both the United States Commodity Futures Trading Commission (CFTC) and the Federal Trade Commission (FTC) have taken legal actions that have left the financial and crypto community in a state of shock.

The CFTC, first, has filed a lawsuit in the US District Court for the Southern District of New York against Stephen Ehrlich, the former CEO of Voyager Digital, as well as against the company itself.

The allegations center on alleged fraud and “registration failures” related to Voyager’s platform and its “unregistered commodities pool.” The CFTC is seeking a series of punitive measures including restitution, reimbursement, civil monetary penalties, and permanent trading and registration bans.

However, what stands out most in this case is the accusation that Ehrlich and Voyager falsely promoted their platform as a “safe haven” to earn high returns on digital assets. This implies that they could have used deceptive and unethical practices to attract investors.

FTC also becomes a participant

Simultaneously, the FTC has also sprung into action, announcing a settlement with Voyager that permanently prohibits the company from using consumers’ assets.

This settlement suggests that Voyager may have been involved in harmful consumer activity or financial irregularities. Additionally, the FTC plans to file a lawsuit against the company’s former CEO, although the precise details of this action have not yet been revealed to the public.

The scandal takes an even more intriguing turn with the revelation that the CFTC had already filed a lawsuit against the founder and former CEO of Voyager Digital.

CFTC Lawsuit Voyager Digital

This suggests that legal actions against the company and its leadership are multiple and in full development. The lack of additional details about the lawsuits and the settlement with the FTC indicates that the investigations and legal proceedings have not yet been fully made public.

This legal scandal is casting a shadow over the crypto world and raising important questions about regulation and transparency in the cryptocurrency market.

As investigations and lawsuits develop, the financial community will be attentive to the implications of this case for the future of cryptocurrencies and the responsibility of companies in this sector.

Related posts

Stork Network Secures $4 Million to Enhance On-Chain Data Access

Guido Battigelli

Grayscale Says the SEC Labels its Filecoin Trust as Security

Godfrey Benjamin

OKX Wallet and Forbes Collaborate to Offer Web3 Innovators Access to the Legacy Pass NFT Community

jose

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More