Voyager CEO reportedly made $30M from stock sales News ▸ Bitcoin ▸ Bankruptcy
Voyager CEO reportedly made $30M from stock sales
Three of Ehrlich's largest transactions, totaling 1.4 million shares and worth $19 million, were made in February 2021.
2 min read
Updated: Aug. 3, 2022 at 4:37 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
Voyager’s CEO Stephen Ehrlich made over $30 million when he sold the company shares when it was trading at its peak in 2021, CNBC reported Aug. 3.
According to CNBC’s report, Ehrlich sold 1.9 million shares between Feb. 9, 2021, and March 31, 2021, in eleven transactions. The transactions were worth $31 million.
It is “challenging to establish” the total amount Ehrlich made because of the “complex and opaque structure” of the firm, CNBC stated.
Ehlrich sold Voyager’s share near peak
Three of Ehrlich’s largest transactions, totaled 1.4 million shares and worth $19 million, were made in February 2021 and were connected to a $50 million secondary offering by Stifel Nicolaus.
Voyager’s share rose to as high as $26 in March 2021, coinciding with the bull run of flagship digital assets like Bitcoin (BTC) and Ethereum (ETH).
CNBC reported that Voyager’s share would later trade at an all-time high of “$29.86 a week after Ehrlich’s final sale on April 5, 2021.” However, the shares lost 41% of their value three weeks after this high.
Voyager canceled ASDP adoption
Voyager adopted the automatic securities disposition plan (ASDP) in December 2021. The policy is meant to impose a trading plan that prevents insiders and executives from gaining an undue advantage when trading their shares.
Ehrlich, however, canceled the policy less than a month later because he “felt it was in the best interest of the investors to withdraw the plan.”
Before ASDP was canceled, Voyager executives had not completed any trade under the policy.
Voyager and crypto market crash
Voyager was one of the crypto firms deeply affected by the recent crypto market crash. The crypto lending service provider filed for bankruptcy on July 6 after it revealed that Three Arrows Capital had defaulted on its loan.
Reports have also revealed that Voyager’s products were not insured by the Federal Deposit Insurance Corporation (FDIC). The federal agency has issued a statement warning the firm to desist from making such “false and misleading” claims.
Several US states have also opened investigations into the firm’s operation.
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Posted In: Bitcoin, Bankruptcy
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Oluwapelumi Adejumo
Oluwapelumi values Bitcoin's potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.
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Bitcoin, a decentralized currency that defies the sway of central banks or administrators, transacts electronically, circumventing intermediaries via a peer-to-peer network.
Ethereum
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Ethereum is a decentralized, open-source blockchain platform that enables the creation of smart contracts and decentralized applications (DApps).
Voyager
Voyager Digital is a bankrupt cryptocurrency exchange company in the United States that was founded in 2018.
Celsius Network
Celsius Network is a bankrupt cryptocurrency lending company that was founded in 2017 and headquartered in Hoboken, New Jersey.
Three Arrows Capital
Three Arrows Capital (3AC), a Singapore-based crypto hedge fund, collapsed due to poor risk management, recklessness in dealing with business partners and a significant portion of greed.
