CFTC Accuses Voyager Digital Co-founder Stephen Ehrlich of Fraud

The Commodity Futures Trading Commission (CFTC) has accused Stephen Ehrlich, one of the co founders of Voyager Digital of engaging in activities. The CFTC alleges that Ehrlich and Voyager provided misleading information, about the companys status during challenging times.

According to the CFTC Ehrlichs deceptive statements led to losses for clients who had placed their trust in Voyager. It is claimed that between February and July 2022 both Ehrlich and his company made assurances about the security of the Voyager platform while enticing customers with promises of investment returns. They pooled funds amounting to billions, which were allegedly lent to high risk parties.

Ian McGinley, the Director of Enforcement at the CFTC highlighted that despite assuring security and transparency Voyager took risks with client assets. Consequently Voyager found itself on the brink of bankruptcy.

Furthermore an agreement has been reached between the Federal Trade Commission (FTC) and Voyager that prohibits them from managing consumer funds. Additionally Ehrlich is facing accusations from the FTC for claiming that client accounts were FDIC insured. While Voyager has resolved its issues with the FTC through a settlement agreement Ehrlichs legal case is still pending in court. Far there have been no statements or comments, from Ehrlich regarding these allegations.

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