In the wake of the lending institution’s financial collapse in July 2022, American authorities found themselves contemplating a decisive response against Stephen Ehrlich, accusing him of breaching derivatives regulations.
Rumors swirl within the corridors of the United States Commodity Futures Trading Commission (CFTC), hinting at a potential crackdown on Stephen Ehrlich, the erstwhile chief executive officer of Voyager Digital, a crypto lending firm.
Per an illuminating Bloomberg report dated October 6, CFTC’s staff members are in the throes of deliberation, pondering the notion of pursuing punitive measures against Ehrlich. Their investigation, which culminated just before Voyager’s bankruptcy filing, suggests that the former CEO transgressed U.S. derivatives regulations. It’s worth noting that Voyager sought refuge under Chapter 11 in July 2022, coinciding with the turbulence in the cryptocurrency market.
Ehrlich, evidently perturbed and mystified by the allegations, shared his sentiments, remarking, “These allegations appear to be one of those times where the referees are making new rules and calling foul after the game has ended.”
Voyager, ensnared in the labyrinth of bankruptcy proceedings, had already attracted the scrutiny of the U.S. Federal Trade Commission due to its purportedly deceptive and inequitable marketing of cryptocurrencies to the public. As of the time this text was written, a bankruptcy court had sanctioned Voyager’s plan to reimburse its clients in May, and the case remained unresolved.
While the CFTC juggles several impending cases against cryptocurrency enterprises, any ensuing ripples could potentially reshape the U.S. regulatory landscape. Notably, in 2023, a significant portion of enforcement actions have been instigated by the Securities and Exchange Commission. Amidst this regulatory maelstrom, Binance and its CEO, Changpeng Zhao, have fervently implored the authorities to dismiss a CFTC lawsuit initiated in March. Simultaneously, a wave of executive departures from Binance.US has occurred, mirroring the heightened regulatory scrutiny.