The Head Of Voyager Digital Sold Shares Before The Bankruptcy Of The CompanyAdmin
Crypto broker Voyager Digital CEO sells $30M of firm shares at an all-time high.
Voyager Digital CEO Steven Erlich sold $30 million worth of shares in the firm in the spring of 2021 when they reached their all-time high, CNBC found out, citing financial reports from the Canadian Securities Administration.
Ehrlich and his firm Delaware reportedly sold off 1.9 million VOYG shares between February and March 2021, breaking them into eleven transactions. Voyager shares peaked at $29.8 a week after Ehrlich’s final sale. Three more weeks later, VOYG shares lost 41% of their value.
As CNBC notes, many publicly traded companies in the US have restrictions or predetermined schedules regarding when management can make sales. However, Voyager’s shares are traded on the Toronto Stock Exchange, and it is unclear if Erlich violated local securities laws.
Recall that at the end of June, Voyager told creditors that the hedge fund Three Arrows Capital had defaulted on a $650 million loan that the broker provided using clients’ assets. At the same time, the broker assured that he would continue to provide services and retain the ability to withdraw funds, but after five days, he froze the withdrawal of client assets, citing “market conditions.”
In early July, the broker went bankrupt. In the middle of the same month, the US Federal Reserve publicly ordered Voyager Digital to stop misleading investors about insuring their assets. Read about why the New Jersey financial regulator banned cryptocurrency deposits in Voyager Digital in the BeInCrypto editorial material.