Voyager co-founder fined $750K after Chapter 11 collapse

Core Viewpoint - Voyager Digital Ltd., once a prominent crypto lender, is back in the news following a $750,000 fine imposed on co-founder Stephen Ehrlich by the CFTC for misleading customers and operating a fraudulent trading platform [1][2][3]. Group 1: Company Background - Voyager filed for Chapter 11 bankruptcy in July 2022 after a liquidity crisis triggered by the collapse of crypto hedge fund Three Arrows Capital [2]. - The CFTC's lawsuit against Ehrlich and Voyager was initiated on October 12, 2023, alleging fraudulent operations [2]. Group 2: Regulatory Actions - The CFTC fined Ehrlich $750,000 and barred him from participating in commodity trading for three years [1]. - Regulators stated that Voyager misrepresented itself as a "safe haven" for digital assets, offering assurances similar to traditional financial institutions while actually lending out billions in customer funds to high-risk third parties [3]. Group 3: Legal Settlements - Ehrlich did not admit or deny the CFTC's allegations but expressed relief at the resolution of the matter [4]. - In addition to the CFTC settlement, Ehrlich previously settled with the Federal Trade Commission, agreeing to pay $2.8 million over claims that he falsely assured customers that Voyager deposits were insured by the FDIC [4]. Group 4: Ongoing Legal Issues - A separate lawsuit against billionaire Mark Cuban and the Dallas Mavericks is still ongoing, related to their promotion of Voyager as a safe investment option for cryptocurrency [6].