{"id":173418,"date":"2023-10-13T11:12:34","date_gmt":"2023-10-13T05:42:34","guid":{"rendered":"https:\/\/dripp.zone\/news\/?p=173418"},"modified":"2023-10-13T11:12:34","modified_gmt":"2023-10-13T05:42:34","slug":"voyager-digital-was-no-better-than-a-house-of-cards-cftc-commissioner-crypto-news","status":"publish","type":"post","link":"https:\/\/dripp.zone\/news\/voyager-digital-was-no-better-than-a-house-of-cards-cftc-commissioner-crypto-news\/","title":{"rendered":"Voyager Digital was \u2018no better than a house of cards\u2019 \u2014 CFTC commissioner – Crypto News"},"content":{"rendered":"
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A commissioner for the United States Commodity Futures Trading Commission (CFTC) has slammed Voyager Digital for its mistakes that eventually led to the loss of billions of dollars of customer funds.<\/p>\n

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Statement of @CFTCjohnson<\/a> regarding @cftc<\/a>‘s charges against Voyager’s chief executive officer. Learn more: https:\/\/t.co\/OiBvOoCuV6<\/a><\/p>\n

\u2014 CFTC (@CFTC) October 12, 2023<\/a><\/p><\/blockquote>\n

In an Oct. 12 statement, Commissioner Kristin Johnson took aim <\/a>at Voyager for misleading practices, ignoring warning signs, and \u201cbare-bones due diligence,\u201d which failed to protect customers.<\/p>\n

\u201cBecause of Voyager\u2019s failures, the company became no better than a house of cards.\u201d<\/p><\/blockquote>\n

The commodities said Voyager turned a blind eye to what its subsidiary investment firms were doing with its own customer funds:<\/p>\n

\u201cIt is astounding that Voyager failed to exert pressure on the firms where it invested its customers’ assets.”<\/p><\/blockquote>\n

\u201cInstead of demanding that investment firms that received customer assets offer greater levels of transparency, Voyager shirked the long-established expectations for custodians and simply dispatched customer funds with little effort to preserve the same,” she added.<\/p>\n

Johnson\u2019s comments came after the regulator, along with the Federal Trade Commission, filed parallel lawsuits against Voyager\u2019s former CEO Stephen Ehrlich<\/a>\u00a0on Oct. 12.<\/p>\n

The CFTC lawsuit alleges Ehrlich and Voyager conducted fraud and \u201cregistration failures\u201d over its platform and its \u201cunregistered commodity pool\u201d.<\/p>\n

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It has been frustrating watching lots of obvious malfeasance happening in crypto land and enforcement actions only target low-rent relatively tiny scam operations while the industry was building industrial scale predation machines.<\/p>\n

This is not that pattern!<\/p>\n

\u2014 Patrick McKenzie (@patio11) October 12, 2023<\/a><\/p><\/blockquote>\n

The FTC, on the other hand, reached a proposed settlement with Voyager, banning the firm from offering, marketing, or promoting any product or service that could be used to deposit, exchange, invest, or withdraw any assets, according<\/a> to an Oct. 12 statement.<\/p>\n

Voyager and its affiliates agreed to a judgment of $1.65 billion, which will go toward repaying customers in the bankruptcy proceedings. <\/p>\n

Meanwhile, a separate Oct. 12 statement<\/a> from CFTC Commissioner Caroline Pham said the regulator will continue to pursue action against cryptocurrency firms that misuse customer funds:<\/p>\n

\u201cThere is a significant difference between managing investor money for the purpose of trading derivatives, and taking deposits and providing loans to others. Without financing and consumer credit, our economy would grind to a halt.\u201d<\/p><\/blockquote>\n

Related: <\/em><\/strong>CFTC issues $54M default judgment against trader in crypto fraud scheme <\/em><\/strong><\/a><\/p>\n

However, Pham thinks the CFTC may have stepped outside the bounds of its authority in interpreting what constitutes a commodity pool operator:<\/p>\n

\u201cSuch an interpretation is an overreach beyond our statutory authority and would disrupt well-established legal and regulatory frameworks for lending to institutions and consumer finance.\u201d<\/p><\/blockquote>\n

On Sept. 7, Pham called for the CFTC to establish a cryptocurrency regulatory pilot program <\/a>which would address the risks retail investors face.<\/p>\n

Voyager filed for Chapter 11 bankruptcy<\/a> in July 2022 where it indicated that it may owe anywhere between $1 billion to $10 billion in assets to more than 100,000 creditors.<\/p>\n

The cryptocurrency brokerage firm opened withdrawals for customers<\/a> in June.<\/p>\n

Magazine:<\/em><\/strong> <\/em><\/strong>Crypto regulation: Does SEC Chair Gary Gensler have the final say?<\/em><\/strong><\/a><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

A commissioner for the United States Commodity Futures Trading Commission (CFTC) has slammed Voyager Digital for its mistakes that eventually led to the loss of billions of dollars of customer funds. Statement of @CFTCjohnson regarding @cftc‘s charges against Voyager’s chief executive officer. Learn more: https:\/\/t.co\/OiBvOoCuV6 \u2014 CFTC (@CFTC) October 12, 2023 In an Oct. 12 […]<\/p>\n","protected":false},"author":2,"featured_media":173419,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[235,203,210,234,231,232,237,238,236,233],"class_list":["post-173418","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blockchain","tag-bitcoin","tag-crypto-currency","tag-elon-musk","tag-ethereum","tag-hyperledger","tag-ibm","tag-mining","tag-nodes","tag-spacex","tag-tesla"],"_links":{"self":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/173418","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/comments?post=173418"}],"version-history":[{"count":2,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/173418\/revisions"}],"predecessor-version":[{"id":173421,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/173418\/revisions\/173421"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media\/173419"}],"wp:attachment":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media?parent=173418"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/categories?post=173418"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/tags?post=173418"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}