CFTC Orders Ex-Voyager CEO to Pay $750,000 in Fraud Case

The Commodity Futures Trading Commission has imposed a $750,000 penalty on Stephen Ehrlich, former CEO of collapsed crypto lender Voyager Digital, marking another regulatory crackdown in the digital asset space. The settlement, filed in New York federal court, includes a three-year trading ban and restitution for affected customers—though Ehrlich neither admitted nor denied the allegations.

Voyager's downfall stemmed from misleading claims of platform safety while allegedly funneling customer funds into high-risk ventures. The case underscores the CFTC's expanding oversight role in crypto, with enforcement chief Charles Marvine emphasizing victim compensation and risk prevention as Core mandates.

This action follows the agency's 2023 lawsuit accusing Voyager of falsely advertising double-digit yields on crypto deposits. While the order brings partial closure to one of crypto lending's most spectacular failures, it leaves unanswered questions about retail investor protections in volatile digital asset markets.