Former Chief of Bankrupt Crypto Lender Voyager Sued by CFTC (1)

The co-founder and former chief executive officer of Voyager Digital Ltd. broke derivatives rules while at the helm of the crypto lender, leading to its bankruptcy and $1.7 billion in customer losses, US regulators alleged Thursday.

The Commodity Futures Trading Commission filed a lawsuit against Stephen Ehrlich in US federal court in New York, claiming he and Voyager “fraudulently solicited participation in and operated a digital asset trading and custody platform.” The agency accused the firm of luring customers with promises of returns as high as 12% on certain crypto holdings and making misleading statements about the platform’s safety.

Through ...