By Sabela Ojea
The U.S. Federal Trade Commission is suing Voyager's chief executive Stephen Ehrlich for allegedly falsely telling customers their assets were insured by the Federal Deposit Insurance Corporation.
The governmental agency has signed a settlement agreement with Voyager that bans the crypto company from manipulating consumers' deposits.
Ehrlich hasn't agreed to a settlement with the FTC.
From at least 2018 to Voyager's bankruptcy in July 2022, the company allegedly enticed consumers to deposit cash and cryptocurrency on the platform by saying they were particularly safe, according to the FTC.
"When the company failed, consumers lost access to significant assets they had saved, including ongoing salary deposits, college tuition funds, and down payments for homes," the FTC said in a federal court complaint.
Write to Sabela Ojea at sabela.ojea@wsj.com
(END) Dow Jones Newswires
10-12-23 1433ET
