US regulators probe Voyager Digital's conduct before bankruptcy

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US regulators probe Voyager Digital's conduct before bankruptcy

Investors at the US Commodity Futures Trading Commission have concluded that the co-founder of Voyager Digital breached derivatives regulations before the failed crypto lender plunged into bankruptcy last year, Bloomberg News reported on Friday.

The agency said it plans to accuse Stephen Ehrlich of breaking its rules by misleading customers about the safety of their assets following a probe into Voyager's conduct.

In July last year, Voyager filed for bankruptcy, becoming a casualty of a dramatic drop in prices that had shattered the cryptocurrency industry.

Voyager had lost substantial value during an industry-wide cryptocurrency winter triggered by the collapse of the Terra Luna stablecoin in May 2022 and stopped customers from withdrawing their crypto assets shortly before its bankruptcy filing.

Ehrlich said he referred to actions of others in the crypto industry. Voyager's staff also boasted that they have built the'most ethical' business.