The U.S. Commodity Futures Trading Commission (CFTC) investigators have determined that Stephen Ehrlich, a co-founder of Voyager Digital, violated derivatives regulations before the company’s bankruptcy last year, Bloomberg reported on Oct. 6.

According to the report, the enforcement division of the CFTC has made an internal recommendation to formally accuse Ehrlich of violating derivatives regulations by providing customers with misleading information regarding the safety of their assets.

Following the recommendations, CFTC Commissioners are deliberating on whether an enforcement action should be taken against him soon.

In an emailed statement to Bloomberg, Ehrlich reportedly said the bankrupt lender cooperated with relevant authorities before its implosion. He further said the anticipated lawsuit “angered and perplexed” him. He added:

“These allegations appear to be one of those times where the referees are making new rules and calling foul after the game has ended. I look forward to being vindicated in court.”

Bloomberg also reported that Voyager’s bankruptcy administrator, Paul Hage, endorsed a settlement deal with the Federal Trade Commission (FTC). This agreement addresses the FTC’s allegations that Voyager had provided inaccurate information to its previous customers regarding the availability of Federal Deposit Insurance Corp. (FDIC) protection.

At its peak, Voyager was one of the largest lenders in the cryptocurrency industry. Last year, the company and several others operating a similar business model failed in the wake of market downturn and several high profile collapses.