According to Bloomberg, the US Commodity Futures Trading Commission (CFTC) has filed a lawsuit against Stephen Ehrlich, co-founder and former CEO of Voyager Digital, the bankrupt cryptocurrency lending platform.
Following the development, there was a sudden decrease in the price of the company's token, VGX.
The complaint, filed in the U.S. District Court for the Southern District of New York, accuses Ehrlich of fraud and registration errors related to the Voyager digital asset platform and Voyager's operation of an unregistered commodity pool.
Ehrlich and Voyager allegedly misrepresented the Voyager platform as a high-yield “safe haven” to entice clients to buy and hold digital asset commodities.
The CFTC is seeking restitution, damages, civil penalties, permanent trading and registration bans, and a permanent injunction against further violations of the Commodity Exchange Act (CEA) and CFTC regulations.
“This is a new CFTC action aimed at holding a CEO accountable for his role in the fraudulent operation of a digital asset platform,” said CFTC Executive Director Ian McGinley. He added that Ehrlich and Voyager lied to customers about the security and liability with which they would handle digital asset commodities. *This is not investment advice.
*This is not investment advice.
