Securities Regulation Daily Wrap Up, FRAUD AND MANIPULATION—S.D.N.Y.: Former Voyager CEO to pay $750,000 in CFTC fraud case, (Sep 17, 2025)
Law Firms Mentioned:Cozen O’Connor
Organizations Mentioned:Cozen & O'Connor, PC | Federal Trade Commission
A federal court ordered former Voyager CEO to pay $750,000 in disgorgement and imposed trading and registration bans.
The CFTC announced that the federal district court in New York entered a consent order against Stephen Ehrlich, the former CEO of bankrupt Voyager Digital entities. The order requires Ehrlich to pay $750,000 in disgorgement to compensate Voyager customers, imposes permanent anti-fraud injunctions, and restricts his ability to operate in markets for three years (CFTC v. Ehrlich, No. 1:23-cv-08962-LAK (S.D.N.Y. Sept. 15, 2025)).
Under the order, Ehrlich must pay restitution through Voyager’s bankruptcy liquidation process. He is barred for three years from registering with the CFTC or managing or advising trading accounts on behalf of others. Additionally, the court permanently enjoined him from future violations of anti-fraud provisions of the Commodity Exchange Act and CFTC regulations.
The case arose from a CFTC complaint filed in October 2023 and reflects the CFTC’s broader enforcement efforts in the digital asset sector. The CFTC highlighted that the resolution compensates harmed investors while preventing Ehrlich from engaging in further misconduct. The CFTC also acknowledged assistance from the Federal Trade Commission in pursuing the case.
The case is No. 1:23-cv-08962-LAK.
Judge: Kaplan, L.
Attorneys: Rachel A. Hayes for the CFTC. Sarah Rebecca Krissoff (Cozen O’Connor) for Stephen Ehrlich.
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