Bankrupt Crypto Lender Voyager Plans to Settle CEO, CFO Negligence Claims Related to Three Arrows Loans

Oct 19,2022
KingData News: Crypto lender Voyager Digital is planning to settle with two top executives over their handling of loans made to crypto hedge fund Three Arrows Capital (3AC) following an internal probe, according to court filings submitted on Monday. In March, CEO Stephen Ehrlich and then-Chief Financial Officer Evan Psaropoulos agreed to allow Voyager to lend Three Arrows nearly $1 billion in crypto with very little financial disclosure from the fund, according to the filings. A special committee comprised of two of Voyager’s board members found that pursuing negligence claims against Ehrlich and Psaropoulos, who is now Voyager’s chief commercial officer, would be difficult and expensive and that Voyager would be unlikely to recover much. Instead, Voyager is suggesting a settlement that would have Ehrlich pay $1.1 million in cash to Voyager, pursue claims under directors and officers insurance policies for as much as $20 million and allow Ehrlich and Psaropoulos to continue in their current roles.
On June 13, Zhu Su, co-founder of Three Arrows Capital, has removed ETH, AVAX, LUNA, SOL, NEAR, MINA and other Tokens from his Twitter profile. On June 15, sources revealed that the total liquidation amount of Three Arrows Capital on Deribit, BlockFi and other lending platforms was up to $400 million. This indicator provides a real-time tracking of news reports on Three Arrows Capital's liquidity crisis.
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