The former CEO of Voyager Digital may face enforcement action from the CFTC: Report

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.

The post The former CEO of Voyager Digital may face enforcement action from the CFTC: Report appeared first on BitcoinWorld.

Comments

Post a Comment

Popular posts from this blog

SHIB, PEPE: Bitcoin Devs Want to Crush $500 Million Meme Coin Market

Image
The meme coin hype was re-ignited in the second quarter of 2023. The launch of Pepe Coin in mid-April single-handedly managed to kickstart the market’s meme-coin season. The original PEPE Coin is an ERC-20 token that’s based on Ethereum. On the heels of the rising hype, other blockchains have gradually stepped up. On Bitcoin, BRC-20 tokens have gained significant popularity. According to brc-20 .io, there are around 24,677 BRC-20 tokens worth $475,058,296. It is worth recalling that their cumulative worth surpassed the $1 billion threshold last month. The Bitcoin blockchain is currently sustaining several spin-off versions of original meme tokens. For instance, the BRC-20 token ‘pepe’ was worth $0.20 at press time on Monday, post noting a 1.1% incline over the past day. Its aggregate capitalization was over $8.3 million. The original Pepe Coin, however, noted a 7% decline in 24-hours and was priced at $0.00000119. Its market cap stood much higher, at $466.1 million. Likew
Read more

Polygon Releases 3 Major Proposals for POL Token

Image
In a June announcement, Sandeep Nailwal, the creator of Polygon , revealed a substantial technical enhancement to the ecosystem through the introduction of the POL token. This token is a crucial component of the Polygon 2.0 proposal, which aims to evolve the Polygon ecosystem from a single chain into a network of interconnected Layer 2 solutions [L2s]. In a more recent development, the team has put forth three proposals for implementing the Polygon 2.0 upgrade. Polygon Labs has introduced three Polygon Improvement Proposals [PIPs]. Through these, the transition strategy becomes more defined. It also delivers specifications for the enhanced Polygon 2.0 architecture and elucidates alterations to its native token. So what are Polygon’s latest PIPs? PIP-17 : As mentioned above, there are a total of three PIPs. The first proposal, or PIP-17, highlights “Phase 0” of Polygon 2.0. This guarantees that neither end-users nor developers utilizing the existing Polygon PoS and zkEVM cha
Read more

WikiLeaks founder Julian Assange to attend 'metaverse' political rally

Image
Julian Assange , who is wanted by the United States on 18 espionage charges, is to appear in the ‘ Metaverse ’ alongside former UK Labour leader Jeremy Corbyn as part of a virtual protest against the WikiLeaks founder’s extradition to the US.  Assange will appear at the web3 political rally on August 26 in an effort to raise awareness of and help prevent his extradition. Also giving speeches at the event will be his wife Stella Assange, Corbyn, and WikiLeaks editor-in-chief Kristinn Hrafnsson.  According to a press release shared by event host Wistaverse, “speakers at the rally will appear either as characters inside the event or with filmed contributions shown on screens inside the arena.”  The arena will be “designed to look like the Royal Courts of Justice in London where Assange is set to face his final appeal in the UK court system.” Organizers of the protest hope to build up support for a real-life protest at the Royal Courts of Justice once a court date is announced. T
Read more