Stephen Ehrlich, in reaction to these accusations, has categorically refuted them.
The former CEO claims that he is being made the scapegoat for the acts of others.
The U.S CFTC has launched a lawsuit against former Voyager Digital Ltd. CEO Stephen Ehrlich, bringing the cryptocurrency business back into the limelight.
Stephen Ehrlich allegedly broke derivatives laws and misled clients about the security of their digital assets. This has been detailed in a recent report by the Commodity Futures Trading Commission (CFTC). The agency has taken a major step towards enforcing crypto rules by filing a case in a U.S. federal court in New York.
Violation of Agency Regulations
During Ehrlich’s time as CEO, the CFTC claims he broke laws meant to promote openness and honesty in the derivatives market. The lawsuit also alleges that Ehrlich and Voyager Digital misrepresented the platform as a “safe haven” for users’ digital assets. Thereby enticing unwary investors into a risky scenario.
Bloomberg News said that CFTC investigators had already found that Ehrlich had violated agency regulations prior to the filing of the complaint. A decision on whether to pursue enforcement measures against the former CEO was thereafter being discussed by the regulatory body’s commissioners.
Moreover, Stephen Ehrlich, in reaction to these accusations, has categorically refuted them. He has made a point of highlighting the fact that he has never had any problems throughout his lengthy and spotless career in regulated markets at public firms. Ehrlich claims that he is being made the scapegoat for the acts of others inside several corporations.
The claims against Ehrlich follow the collapse of Voyager Digital in July of last year. The firm failed as a result of the severe market collapse that hit the cryptocurrency industry.