1659741163 Bankrupt Voyager CEO Sold 30M Company Shares During Its Peak

Bankrupt Voyager CEO Sold $30M Company Shares During Its Peak In 2021

Steve Ehrlich, CEO of currently bankrupt crypto broker Voyager Digital, sold more than $30 million in company shares in 2021, reported CNBC analysis of Canadian Securities Exchange filings.

In February and March 2021, when Voyager shares were close to their peak, the crypto lending firm announced bankruptcy in July 2022, financial records show.

In 2019 voyager got listed on the Canadian Securities Exchange under the VYGR ticker at $0.62 per share. Afterwards, the company’s stock generally traded at approximately $1.

Voyager shares would peak at $29.86 seven days after Ehrlich’s final sale on April 5, 2021. Three weeks after that, VOYG shares had lost 41% of their worth. By November 2021, Voyager was down 69% from its peak as the crypto market was peaking.

Voyager Digital is the new casualty from the Terra and LUNA cryptocurrency collapse. Voyager said it fast jumped to hedge its risk as crypto winter began in early 2022. This measure was successful “in most instances.” all the better to safeguard against Terra’s spectacular May collapse.

However, on July 5, the VYGR shares quit trading on the TSX and filed for bankruptcy. Though in 2021, shares hit an all-time high of $27.39 and moved to the Toronto Stock Exchange.

A CNBC report using Verity analysis revealed that insider sales totalled $69 billion last year. The report shows a 30% increase in 2020 and a 79% increase compared to the past 10-year average.

On late Tuesday, Voyager filed for Chapter 11 bankruptcy. The crypto broker, suffering from the bankruptcy and liquidation of Three Arrows Capital, stopped all activity on its platform last week.

In its bankruptcy filing, Voyager conveyed it has over $110 million of cash and owned crypto assets on hand.

Voyager holds nearly $1.3 billion of digital assets on its platform. Those assets contain more than $650 million in claims against crypto hedge fund Three Arrows Capital (3AC).

On June 22, Voyager signed a contract for a $500 million credit facility from Alameda Research.

Voyager had a problem earlier this year as crypto prices fell more than 70% from their peak last fall. In particular, the collapse of a Terra stablecoin, considered pegged to the U.S. dollar, sent shockwaves via the industry.
The Federal Deposit Insurance Corporation has also asked the firm to stop making “false and misleading” claims about customer funds being secured by the U.S. government.

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