The CFTC Has Charged Voyager Co-founder With Fraud

Published on:

Last Updated on October 13, 2023 by Bitfinsider

Stephen Ehrlich, co-founder of Voyager Digital, was charged with fraud and failure to register with the Commodity Futures Trading Commission.

Ehrlich and his firm misled to consumers and then continued to lie as Voyager began to fail in order to conceal the crypto lender’s true financial state, according to the CFTC.

“While representing that they would treat customers’ digital asset commodities safely and responsibly, behind the scenes, they took shockingly reckless risks with their customers’ assets, leading to Voyager’s bankruptcy and huge customer losses,” CFTC Enforcement Director Ian McGinley said in a statement on Thursday.

Between February 2022 and July 2022, Ehrlich and Voyager “engaged in a scheme to defraud customers by misrepresenting the safety and financial health of the Voyager digital asset platform,” according to the agency.

Ehrlich promised customers high-yield returns of up to 12%, and in order to generate that income to pay customers the returns, Ehrlich and Voyager pooled customer funds and transferred “billions of dollars’ worth of customers’ digital asset commodities as ‘loans’ to high-risk third parties,” according to the CFTC.

Hardware wallets are safe and secure devices that can be used offline. They keep your cryptocurrency offline, making it impossible for you to be hacked. To find out more on the leading hardware wallets, you may view our reviews here: Ledger & Trezor
Disclaimer: The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, legal, tax or other advice. Investing in or trading cryptocurrency or stocks comes with a risk of financial loss.