The US Commodity Futures Trading Commission (CFTC) has filed a complaint against Voyager Digital and its former CEO, Stephen Ehrlich, alleging fraud and registration failures. The CFTC claims that Ehrlich falsely marketed the Voyager platform as a safe haven for high-yield returns, deceiving customers into purchasing and storing digital assets. The lawsuit seeks penalties including restitution, disgorgement, civil monetary penalties, and permanent trading and registration bans. The Federal Trade Commission (FTC) has also charged Voyager and Ehrlich with violating the FTC Act and the Gramm-Leach-Bliley Act. The FTC alleges that Voyager falsely claimed customers’ accounts were insured by the FDIC and misled consumers about the safety of their deposits. The proposed settlement would permanently ban Voyager and its affiliates from handling consumers’ assets and offering related services, with a judgment of $1.65 billion suspended to allow Voyager to return remaining assets to consumers during bankruptcy proceedings. Ehrlich has not agreed to the settlement, and the FTC’s case against him will proceed in federal court. The proposed settlement also prohibits Voyager and its affiliates from misrepresenting product benefits and disclosing consumer information without consent. Both regulatory bodies aim to hold Voyager, Ehrlich, and other parties accountable for alleged deceptive practices and violations of financial regulations.

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Information	Details
Geography	North America
Countries	🇺🇸
Sentiment	negative
Relevance Score	1
People	Stephen Ehrlich, Francine Ehrlich
Companies	Gramm-Leach-Bliley Act, Voyager Digital, Federal Trade Commission (FTC), US Commodity Futures Trading Commission (CFTC), Federal Deposit Insurance Corporation (FDIC)
Currencies	None
Securities	None