Officers at america Commodity Futures Buying and selling Fee (CFTC) have been reportedly contemplating an enforcement motion in opposition to Stephen Ehrlich, the previous CEO of crypto lending agency Voyager Digital.
Based on an Oct. 6 Bloomberg report, CFTC workers have been contemplating taking motion in opposition to Ehrlich following an investigation concluding the previous CEO violated U.S. derivatives laws previous to Voyager’s chapter submitting. The agency filed for Chapter 11 safety in July 2022 amid the crypto market downturn.
Ehrlich was reportedly “angered and perplexed” by the claims:
“These allegations seem like a kind of occasions the place the referees are making new guidelines and calling foul after the sport has ended.”
Associated: Collectors for bankrupt Voyager Digital billed $5.1M in authorized charges
Voyager, nonetheless in the midst of chapter proceedings, was already beneath scrutiny from the U.S. Federal Commerce Fee “for [its] misleading and unfair advertising and marketing of cryptocurrency to the general public”. A chapter court docket permitted Voyager’s plan to repay prospects in Could, and the case was ongoing on the time of publication.
The CFTC has a number of circumstances pending in opposition to crypto corporations which have the potential to make waves throughout the U.S. regulatory area, however most of the enforcement actions in 2023 have been introduced by the Securities and Trade Fee. Binance and its CEO Changpeng Zhao have pushed for authorities to dismiss an CFTC lawsuit filed in March whereas many executives at Binance.US have left the change amid regulatory scrutiny.
Journal: US enforcement businesses are turning up the warmth on crypto-related crime
