U.S. CFTC orders former CEO of crypto lending company Voyager to pay $750,000 to defrauded customers

ChainCatcher news, according to Bloomberg, the U.S. Commodity Futures Trading Commission (CFTC) announced on Monday that Stephen Ehrlich, co-founder and former head of the bankrupt crypto lending platform Voyager Digital Ltd., must pay $750,000 to defrauded customers.

According to a consent order from the New York federal court, Ehrlich neither admitted nor denied the charges and is banned from engaging in commodity trading for three years, along with other restrictions. CFTC Acting Director Charles Marvine stated that this settlement highlights its important role in the digital asset space, with compensating victims and limiting the defendant's future ability to cause harm being its core mission. In October 2023, the CFTC sued Ehrlich and Voyager, accusing them of fraudulently operating a digital asset platform, misleading customers by claiming it was a "safe harbor," and attracting clients with high returns while lending billions of dollars of customer assets to high-risk third parties. Ehrlich expressed that he was "angry and disappointed" by the charges at that time. Previously, Ehrlich had reached a settlement regarding false statements related to the Federal Trade Commission (FTC).