U.S. Regulators Target Former Voyager Digital CEO, Accusing Him of Fraud and Deceptive Practices

Former Voyager CEO Accused of Fraud and False Claims by U.S. Regulators

Former Voyager CEO accused of fraud and false claims by US regulators

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Hey there, digital asset investors! Have you heard the latest juicy news? U.S. regulators are unleashing their wrath on the former CEO of Voyager Digital, Steve Ehrlich. They are throwing fraudulent accusations at him and claiming that he deliberately misled his customers about government protections. Talk about a wild ride in the crypto world!

The Commodity Futures Trading Commission (CFTC) and the Federal Trade Commission (FTC) joined forces to take down Ehrlich in a grand announcement last Thursday. The CFTC slammed him with allegations of defrauding customers by painting a rosy picture of the company’s strength while conducting business without proper registrations. On the other hand, the FTC accused him of fibbing about customers’ funds being safeguarded by the Federal Deposit Insurance Corp. Oh, the audacity!

But wait, there’s more! According to Ian McGinley, the CFTC’s enforcement director, Voyager and Ehrlich pulled off a grand deception. While supposedly promising to handle customers’ digital asset commodities safely and responsibly, they were actually taking shockingly reckless risks with their customers’ assets. These risky maneuvers eventually led Voyager to bankruptcy, causing immense losses to its customers. Talk about a financial rollercoaster!

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Now, let me introduce you to the FTC’s role in this drama. They settled with the company, Voyager, and declared a permanent ban on Voyager ever touching customers’ assets. To add a pinch of salt to the wound, the FTC slapped Voyager with a whopping $1.65 billion judgment. Ouch! However, the judgment is suspended to allow Voyager to continue its liquidation process and pay back its customers. It’s like putting a giant pause button on a chaotic storyline!

Samuel Levine, director of the FTC’s Bureau of Consumer Protection, had some important advice for all companies and individuals out there. He emphasized the crucial lesson to never play fast and loose with claims about FDIC insurance. Got it, folks? Don’t mess with government insurance claims, or the regulators will come knocking!

Let’s switch gears to discuss the aftermath of Voyager’s collapse. Brace yourselves because it’s far from pretty. After the company hit rock bottom in July 2022, they desperately tried to sell themselves to FTX and Binance. Unfortunately, both deals fell through like a house of cards. As a result, former Voyager customers are now facing the daunting reality that they might not recover more than a measly 36% of their assets. Talk about a punch in the gut!

Now, it’s time for a shameless plug, so buckle up! If you’re hungry for more tantalizing news about the crypto world, feel free to sink your teeth into the captivating article “Voyager Creditors Billed $5.1M for March-May by Law Firm.” It’s a wild ride you won’t want to miss.

Okay, folks, that’s all for now. Stay tuned for the latest updates in this thrilling saga of regulatory wrath and cryptic chaos. Remember, in the world of digital assets, things can go from zero to a billion-dollar lawsuit in the blink of an eye. Stay safe out there, and keep your eyes open for any unexpected twists and turns. Happy investing!

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