Voyager CEO Earned Over $30M from Selling Stock in 2021

Voyager CEO Earned Over $30M from Selling Stock in 2021

Stephen Ehrlich, CEO of the now-bankrupt Voyager Digital, made $30 million in stock sales last year when Voyager's shares were hovering around their peak.
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Voyager Digital CEO Stephen Ehrlich earned more than $30 million from sales of the company’s stock last year, according to CNBC. Financial records of the now-bankrupt Voyager show that Ehrlich made substantial gains when the company’s shares were trading near an all-time high in March last year.

Voyager Stock Gains in 2021 Generated Ehlrich $31M in Profit, Records Show

As per CNBC, Voyager Digital’s CEO, Stephen Ehrlich, made more than $30 million from sales of the crypto lender’s shares last year, when the stock was trading near its peak price in February and March. Just several weeks ago, Voyager declared bankruptcy amid prolonged volatility and contagion in the crypto market.

According to the company’s financial records, Ehrlich made a significant profit after Voyager’s shares skyrocketed to $26 apiece in March 2021. The share price rise coincided with a sharp surge in the two largest cryptocurrencies in the world, Bitcoin and Ethereum.

Data from the Canadian Securities Administration showed that Ehrlich and his Delaware LLCs offloaded roughly 1.9 million Voyager shares in the period between February 9, 2021, and March 31, 2021, in 11 separate transactions. Through the sales, Ehrlich generated a total of $31 million, financial data shows.

Furthermore, three of the biggest transactions, which were worth a total of $19 million, were linked to a $50 million secondary offering by investment banking company Stifel Nicolaus in February 2021. Just a week after Ehrlich sold his final shares, the company’s shares hit an all-time high of $29.86, with the stock plummeting 41% just three weeks later. Bitcoin and Ethereum hit new peaks in November 2021, but Voyager’s shares remained 69% down from their record highs.

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Tables Have Turned in 2022 for Voyager

Just over a year after hitting new highs, Voyager’s fortunes have made a tragic U-turn in 2022. The crypto lending firm fell into bankruptcy last month amid a sharp crypto market slump due to high volatility, peaking inflation, and the crash of TerraUSD and its sister token LUNA in May.

“The prolonged volatility and contagion in the crypto markets over the past few months, and the default of Three Arrows Capital (“3AC”) on a loan from the Company’s subsidiary, Voyager Digital, LLC, require us to take deliberate and decisive action now. The chapter 11 process provides an efficient and equitable mechanism to maximize recovery.”

Ehrlich said in a statement.

The market meltdown took a toll on several major crypto firms besides Voyager. Crypto lender Celsius Network and cryptocurrency hedge fund Three Arrows Capital (3AC) both announced bankruptcy in recent weeks.

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