CFTC Contemplates Enforcement Action Against Former Voyager Digital CEO

    The CFTC is considering taking enforcement action against Stephen Ehrlich, the former CEO of Voyager Digital, following allegations of violating U.S. derivatives regulations before the company filed for Chapter 11 bankruptcy protection.

    The United States Commodity Futures Trading Commission (CFTC) is deliberating potential enforcement action against Stephen Ehrlich, the former CEO of cryptocurrency lending firm Voyager Digital. This action comes after an investigation found that Ehrlich had breached U.S. derivatives regulations prior to Voyager’s Chapter 11 bankruptcy filing in July 2022, a tumultuous time for the cryptocurrency market.

    Ehrlich has responded to the allegations with frustration, pointing out that they coincide with regulatory changes that feel like moving the goalposts after the game has ended. Voyager Digital is still navigating bankruptcy proceedings and has faced scrutiny from the U.S. Federal Trade Commission over concerns related to deceptive cryptocurrency marketing.

    The CFTC’s contemplation of enforcement action against Ehrlich aligns with the broader trend of increased regulatory scrutiny of cryptocurrency-related businesses. While the SEC has initiated numerous enforcement actions in 2023, the CFTC has pending cases against several crypto firms, including Binance and its CEO, Changpeng Zhao.

    This development underscores the growing emphasis on regulatory compliance in the cryptocurrency industry as multiple regulatory bodies intensify oversight. Market participants must adapt to this evolving landscape to ensure compliance with U.S. regulations.

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