CFTC Says Voyager Digital Was a House of Cards

The CFTC‘s Christine Johnson spoke out against Voyager Digital, the bankruptcy broker responsible for the loss of billions of dollars in client funds.

According to Johnson, the company engaged in deceptive practices and ignored warning signs, ultimately failing to protect its users.

She compared Voyager to a “house of cards,” criticizing their lack of transparency and diligence in handling customer assets.

Moreover, Johnson pointed out that Voyager did not properly monitor its subsidiary investment organizations and failed to demand a higher level of transparency from them. Instead, they sent assets without taking enough precautions to safeguard them.

These statements were made following lawsuits filed by the CFTC and FTC against Voyager and its former CEO, Stephen Ehrlich.

The CFTC alleges that the defendants committed fraud and did not register their platform and product, the commodity pool.

Meanwhile, the FTC accused Voyager of falsely advertising FDIC insurance coverage and misleading customers regarding the availability of certain products and services.