New details have emerged regarding the transactions of insider inquiries at altcoin project Voyager Digital. These transactions took place months before the last bankruptcy filing, which caused Users to lose their investment. The revelation of Voyager CEO Stephen Ehrlich’s transactions has triggered new question marks.
The CEO of this altcoin project has sold millions
Notably, Stephen Ehrlich, the CEO of the troubled altcoin project, has earned more than $30 million by dumping shares of Voyager (VGX) in different transactions, as reported on Aug. The CEO’s sales took place early last year, when the price of VGX nearly peaked. The files reveal that Ehrlich and Delaware LLCs were sold between February 9, 2021 and March 31, 2021. Accordingly, the CEO emptied his basket by selling approximately 1.9 million shares. The sale was split into 11 separate transactions for a total of $31 million. In particular, SEC documents show that the three largest transactions were valued at around $19 million. It also reveals that for such income, it requires a total of 1.4 million shares.
FILE PHOTO: Voyager Digital logo and decreasing stock graph are seen in this illustration taken, July 7, 2022. REUTERS/Dado Ruvic/IllustrationsVoyager share prices drop sharply
Voyager shares fell in value as insiders learned of the crisis and sold their shares. Voyager shares peaked at $29.86 just a week after Ehrlich’s last sale on April 5, 2021. But just three weeks later, Voyager shares dropped 41% from a record high. However, on December 31, 2021, Voyager announced that it had adopted automatic securities divestment plans for Ehrlich and another executive. However, they canceled the plan on January 20, 2022, before any action could be completed. The truth soon came to light. The company’s announcement referred to the effects of the collapse in the cryptocurrency market. This announcement came just weeks after the altcoin project filed for bankruptcy.
Companies that went bankrupt in the crypto bear market
Before Voyager went bankrupt, he mentioned hedge fund Three Arrows Capital (3AC). Voyager was describing a $650 million loan it made using client assets. In short, he was saying that the 3AC company he gave the loan to defaulted on its debt. However, 3AC was also among the crypto firms filing for bankruptcy protection. Additionally, it’s worth noting that Voyager assures clients that they will be able to access their funds. However, the company decided to freeze the withdrawal of customer funds after this assurance. Like Voyager, Celsius has also disclosed its liquidity woes, as we reported on Kriptokoin.com. After the announcement, the company filed for bankruptcy. Celsius also assured that it would resume normal operations. However, it did not allow customers to perform asset withdrawals.
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