WASHINGTON, D.C. — Stephen Ehrlich, the former CEO of cryptocurrency platform Voyager Digital, has agreed to a $2.8 million settlement with the Federal Trade Commission (FTC) to resolve allegations that he and his company misled consumers. The settlement also prohibits Ehrlich from marketing or selling retail products or services related to buying, selling, depositing, or trading cryptocurrency.
The FTC’s complaint, filed in October 2023, accused Voyager Digital and Ehrlich of falsely assuring customers that their deposits were FDIC-insured and “as safe with us as at a bank.” Contrary to these promises, most funds were not insured, leaving consumers unprotected. When Voyager ultimately failed, its customers lost more than $1 billion in cryptocurrency assets, according to the complaint.
Additionally, the FTC alleges that when the company collapsed, consumers were unable to access their accounts—including life savings and funds earmarked for major expenses like college tuition and home down payments—for more than a month.
Previously, the FTC reached a settlement with Voyager Digital, LLC, and its affiliated companies, finalized in November 2023.
Under the new proposed settlement, Ehrlich and his wife, Francine Ehrlich, named in the complaint as a relief defendant, will pay $2.8 million. The settlement also imposes strict restrictions on Stephen Ehrlich’s business activities, permanently barring him from:
- Marketing or selling retail cryptocurrency-related products and services.
- Making misrepresentations about any product or service.
- Providing false statements to customers of financial institutions to obtain financial information.
- Disclosing nonpublic personal information of consumers without their explicit consent.
The FTC’s enforcement action underscores the agency’s commitment to protecting consumers from deceptive financial practices and ensuring accountability in the cryptocurrency sector. The Commission’s vote to approve the stipulated final order was unanimous, 3-0.
The case is being handled in the U.S. District Court for the Southern District of New York, with FTC attorneys Mark Glassman, Quinn Martin, and Elizabeth Arens leading the matter. Stipulated final orders carry the force of law once signed by a District Court Judge.
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