Ex-Voyager CEO must pay $750K to customers under a court-approved settlement with U.S. regulators, marking a significant development in the long-running fallout from Voyager Digital’s collapse.

Stephen Ehrlich, the former chief executive of the failed crypto lending firm, has been ordered by the U.S. District Court for the Southern District of New York to pay $750,000 in restitution. The consent order, filed in response to a 2023 enforcement action by the Commodity Futures Trading Commission (CFTC), includes both financial and supervisory penalties.

CFTC cracks down on misleading practices in digital asset markets

The court’s order imposes:

• $750,000 in disgorgement, intended for direct customer redress.
• A three-year prohibition on trading or advising on behalf of others in regulated markets.
• Permanent injunctive relief barring Ehrlich from further violations of U.S. commodity laws.

Charles Marvine, Acting Director of the CFTC’s Retail Fraud Task Force, stated that the outcome aligns with the agency’s broader mission to protect retail investors and prevent misconduct in crypto markets.

Voyager’s demise was a tipping point in crypto lending turmoil

Voyager Digital filed for bankruptcy in 2022, following a cascade of failures linked to the collapse of the Terra/Luna stablecoin system and the insolvency of Three Arrows Capital. The hedge fund defaulted on a $650 million loan from Voyager, pushing the platform into crisis.

Subsequent efforts to sell Voyager’s assets failed as key bidders — FTX and later Binance.US — exited due to their own legal or regulatory setbacks. The platform’s customers were left entangled in bankruptcy proceedings, which continue to this day.

Broader regulatory pressure builds in the post-bankruptcy landscape

This latest judgment follows a $2.8 million fine issued by the Federal Trade Commission (FTC) in June 2025, which concluded a separate investigation into misleading advertising practices. Ehrlich was also banned from marketing or selling crypto-related financial services as part of that FTC settlement.

He is required to pay the $750,000 by 25 September 2025. Failure to comply will trigger interest penalties. Ehrlich did not admit liability under the terms of the CFTC agreement.

Ex-Voyager CEO must pay $750K to customers as part of a settlement secured by the Commodity Futures Trading Commission (CFTC), following Voyager Digital’s bankruptcy and subsequent regulatory action.

The U.S. District Court for the Southern District of New York approved a consent order against Stephen Ehrlich, former CEO and co-founder of the now-defunct cryptocurrency platform. The order mandates $750,000 in disgorgement, to be paid directly to affected Voyager users.

CFTC sanctions include financial penalties and operational bans

Alongside the financial sanction, the consent order includes:

• A three-year ban on registering with or advising third-party trading accounts.
• A permanent injunction against future violations of the Commodity Exchange Act.
• Disgorgement funds directed to customers via the Voyager bankruptcy proceedings.

According to Charles Marvine, Acting Chief of the CFTC’s Retail Fraud Unit, this outcome demonstrates the agency’s ongoing commitment to “compensating victims and curbing future misconduct in the digital asset sector.”

Voyager collapse triggered by crypto market contagion

Voyager Digital was among the first major casualties of the 2022 crypto downturn. Its failure was triggered by exposure to the Terra/Luna collapse and the subsequent default of hedge fund Three Arrows Capital on a $650 million loan.

A series of failed acquisition attempts followed:

• FTX initially won a bid for Voyager’s $1.4 billion in assets before filing for bankruptcy itself in late 2022.
• Binance.US withdrew its offer in 2023, citing hostile U.S. regulatory conditions.

Additional penalties from other regulatory bodies

This $750,000 disgorgement is in addition to a $2.8 million penalty levied by the Federal Trade Commission (FTC) in June 2025. That settlement alleged that Ehrlich and Voyager had made deceptive statements to consumers. It also included a ban on Ehrlich marketing or selling crypto-related financial products.

Ehrlich must remit the $750,000 payment by 25 September 2025 or face accruing post-judgment interest. At the time of writing, his legal team had not issued any public comment.