Busted? Voyager C.E.O. Profited Massively From Stock Sell-Off

August 3, 2022 12:22 pm

Voyager Digital’s C.E.O., Steven Ehrlich, stands at the center of an alleged insider trading conspiracy.

According to sources, Ehrlich made $30 million by selling off his company’s stock around the all-time high of $29.86 per share. Ehrlich made 11 transactions in which he reportedly offloaded 1.4 million shares.

A mere 3 weeks later, Voyager’s share price plummeted by roughly 41% and today the firm has declared bankruptcy.

The accusations are made more poignant by the fact that the company adopted protections to limit the unfair and potentially illegal practices of high-level insider trading, but Ehrlich struck down those policies after his cash-out.

Critics were quick to fire shots at Ehrlich:

 

 

Crypto Slate provided more details:

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).

 

Ehrlich claimed via CNBC:

“Despite having a floor significantly above the current stock price, I felt it was in the best interest of the investors to withdraw the plan,” Ehrlich said in a press release.

“Based on our key financial metrics, including revenues for the quarter ended December 31, 2021 as disclosed in our press release issued January 5, 2022, I believe Voyager is undervalued.”

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