Regulatory bodies CFTC and FTC file lawsuits against former Voyager Digital CEO
In a significant turn of events, the Commodity Futures Trading Commission (CFTC) has filed a complaint against Voyager Digital and its former CEO, Stephen Ehrlich, in the U.S. District Court for the Southern District of New York. The CFTC has accused the duo of concealing their true financial health from customers and taking reckless risks with their assets, leading to Voyager's bankruptcy and substantial customer losses.
The CFTC's allegations against Ehrlich and Voyager include registration failures and misrepresenting the platform as a safe haven for customers to earn high-yield returns. The CFTC claims that these statements were false, and the platform's lending practices were far from secure.
Meanwhile, the Federal Trade Commission (FTC) has reached a $1.65 billion settlement with Voyager, permanently banning it from handling consumer assets. However, Ehrlich has not agreed to a settlement, and the case against him will move forward in federal court, as the FTC stated.
Voyager, in response to its termination with Binance.US, announced that it would return crypto and cash directly to customers through the Voyager platform. A future deal with Binance.US was also terminated.
The current CEO of Voyager Digital is Dylan Taylor. He has been mentioned as CEO in recent 2025 sources related to Voyager Technologies, which is the company's current name after rebranding amid its business activities and challenges.
Commissioner Caroline Pham of the CFTC expressed her disagreement with the agency's interpretation of Voyger and Ehrlich not registering as a "commodity pool operator". She stated that the CFTC's interpretation could disrupt well-established legal and regulatory frameworks for lending.
Commissioner Kristin Johnson described Voyager as "no better than a house of cards". In a surprising turn of events, former FTX CEO Sam Bankman-Fried is standing trial in the same district.
Ehrlich responded to the allegations, stating that he was "outraged and deeply dismayed" by the CFTC and FTC's accusations. No comment was given by a representative for Voyager regarding the CFTC's actions.
The CFTC's lawsuit against Ehrlich and Voyager also includes a claim that they falsely claimed customer accounts were "safe" and insured by the Federal Deposit Insurance Corp. The FTC also sued Ehrlich and his wife, Francine Ehrlich, for making these false claims.
In a notable development, FTX made a bid to buy Voyager in September 2022, but the deal fell through following FTX's own bankruptcy filing. The outcome of the ongoing legal battles between Ehrlich, Voyager, and the regulatory bodies will have significant implications for the cryptocurrency industry.
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