Investigators at a key US regulator have concluded that the co-founder of Voyager Digital Ltd. broke derivatives regulations before the failed crypto lender plunged into bankruptcy last year, Bloomberg News reported. Staff in the Commodity Futures Trading Commission’s enforcement division recommended internally that the agency accuse Stephen Ehrlich of breaking its rules by misleading customers about the safety of their assets following a probe into Voyager’s conduct. CFTC commissioners are now voting on whether to approve an enforcement action against him within days, said the people, who asked not to be identified discussing the confidential deliberations. The CFTC can seek fines and impose other non-criminal penalties on those it accuses of wrongdoing. The agency, whose investigations don’t always result in enforcement actions, declined to comment. Voyager disclosed in August 2022 as part of its bankruptcy case that the CFTC had sought information related to its business, customers and lending activities. Ehrlich, who was also chief executive officer when Voyager filed for bankruptcy in July 2022, has not been formally accused of any wrongdoing. In an emailed statement, he said he was “angered and perplexed” by the government’s anticipated civil claims and called them unfounded.
