The US Federal Trade Commission (FTC) and Commodity Futures Trading Commission (CFTC) investigations led to the legal charges taken against Stephen Ehrlich. There were rumors that the CFTC staff had determined Ehrlich had broken US derivatives laws.

According to the CFTC's lawsuit, Ehrlich and Voyager misled clients by promising that their digital asset commodities would be managed safely and ethically. However, they took considerable risks with consumer funds behind the scenes, which put Voyager in financial problems and caused big losses for customers. Even when the company was on the verge of failure, they persisted in misleading clients and hiding Voyager's actual financial situation.

The FTC's complaint against Voyager, on the other hand, focuses on the firm's assertions that deposits in USD Coin (USDC) were covered by the FDIC. Ehrlich is accused of giving his wife, Francine, who is listed as a relief defendant in the FTC's action, millions of dollars from Voyager.

The legal measures occur in the midst of tighter government regulation of the cryptocurrency sector and a crackdown on dishonest or deceptive practices. Former CEOs of companies like Celsius and FTX, as well as other leaders in the cryptocurrency business, have lately encountered regulatory difficulties. During a challenging time for the cryptocurrency markets, Voyager filed for Chapter 11 bankruptcy protection in July 2022. Its bankruptcy case is currently pending.

Voyager's proposal to compensate consumers impacted by the company's financial problems was authorized by the bankruptcy court in May.

To maintain compliance with US financial rules and to safeguard customers, the CFTC and FTC are both aggressively pursuing actions against cryptocurrency companies and their executives. The legal proceedings against Ehrlich and Voyager highlight the demand for accuracy and openness in the bitcoin business as it develops and expands.