Busted? Voyager C.E.O. Profited Massively From Stock Sell-Off
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August 3, 2022 12:22 pm
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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:
Voyager Digital CEO Steven Ehrlich made over $30 Million from selling shares of Voyager stock last year according to CNBC
Today Voyager is bankrupt and the total market cap of the company is around $50M
— Stock Market News (@StockMKTNewz) August 3, 2022
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).
Voyager digital CEO is either very lucky or saw something coming, he sold his shares near ATH in 2021 and made over $30 million. Now Voyager is insolvent and has filed for Chapter 11 bankruptcy which will allow them to operate while they pay their debt. The CEO dodged a bullet
— Tajo Crypto (@TajoCrypto) August 3, 2022
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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