TRENDING

Home ยป CFTC investigating the co-founder’s actions as Voyager Digital comes under fire

CFTC investigating the co-founder’s actions as Voyager Digital comes under fire

In light of regulatory scrutiny in the cryptocurrency industry, the CFTC is looking into Stephen Ehrlich, a co-founder of Voyager Digital.

by V. Sinclair
0 comment

The debate surrounding Voyager Digital Ltd. is the latest in a long line of storms plaguing the cryptocurrency industry. Stephen Ehrlich, the co-founder of Voyager Digital, has come under scrutiny as a result of a recent inquiry by the Commodity Futures Trading Commission (CFTC).

Notably, investigators at a significant US regulator have established that Voyager Digital Ltd.’s co-founder broke derivatives laws prior to the failed crypto lender’s bankruptcy last year.

Regulatory Issues
Voyager Digital Ltd., a once-significant player in the cryptocurrency business, is in the eye of a raging tempest as the industry struggles to deal with governmental scrutiny. The Commodity Futures Trading Commission (CFTC) has closed an inquiry of Voyager’s activities, with a special emphasis on the actions of co-founder Stephen Ehrlich, according to Bloomberg, citing persons with knowledge of the situation.

CFTC inspectors apparently suggested taking enforcement action against Ehrlich, it has been discovered. Although these suggestions have not yet received formal approval, they raise serious questions about the company’s compliance with derivatives laws.

Notably, the CFTC is presently deciding whether to take action against Ehrlich. The CFTC has the power to levy fines and other civil penalties. Investigations by the government don’t always result in enforcement measures, but this situation might be a significant exception.

The accusations against Ehrlich, however, are thought to be the result of Voyager Digital’s clients being mislead about the security of their assets. The CFTC’s enforcement division claims that Ehrlich was involved in these alleged deceptions following a thorough investigation into Voyager’s operations.

It’s important to note that Ehrlich has not yet been legally charged with any misconduct. Ehrlich asserted that Voyager has continuously complied with regulations in response to the anticipated civil claims. He described the charges as an instance of officials implementing new rules in retrospect.

Ehrlich reportedly believes he will be vindicated in court, highlighting the company’s dedication to legal compliance in all aspects of its operations.

Regulatory Obstacles Persist
The regulatory issues facing Voyager Digital go beyond the CFTC’s probe. The Federal Trade Commission (FTC) launched its investigation into Voyager earlier this year to look into claims of unfair and misleading marketing of cryptocurrencies to the general public. The difficulties that the troubled platform is currently facing are made worse by this regulatory scrutiny.

In a related incident, US regulators ordered Voyager to delete claims that customers’ dollar accounts were protected by government deposit insurance. Notably, the authorities concluded that these assertions were untrue, which made Voyager’s compliance issues worse.

However, Voyager’s problems serve as a stark reminder of the sector’s need for strict compliance and openness as it navigates a complex regulatory context. The results of these investigations could have significant repercussions for the Bitcoin platform and its co-founder given the current regulatory issues.

It is important to note that despite the industry’s enormous expansion and innovation, it has also come under more regulatory scrutiny. The difficulties Voyager encountered emphasize the difficulties faced by market participants and the value of observing changing regulatory norms.

 

Related Posts :

footer logo

@2023 – All Right Reserved.

Incubated bydesi crypto logo