Voyager Digital will not sue its leaders for incompetence, claim insurance on them
CEO Stephen Ehrlich and CFO Evan Psaropolous will keep their jobs even though they made a huge loan to Three Arrows Capital without due diligence sufficient.< /p>
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Voyager Digital preferred not to sue its executives for incompetence, despite their role in approving a huge loan to Three Arrows Capital (3AC) without adequate due diligence. This loan was a key element leading to the bankruptcy of Voyager Digital. Court documents filed Oct. 17 show that an internal Voyager Digital special committee has proposed that CEO Stephen Ehrlich and Chief Commercial Officer (former CFO) Evan Psaropolous retain their jobs and not be sued.
The court filing outlines the due diligence process for the 3AC loan:
"On February 13, 2022, 3AC provided Voyager with a statement signed by one of its founders, Kyle Davies, containing a single sentence stating that 3AC's net asset value as of January 1, 2022 was $3.729 billion. Unlike other major borrowers of Voyager's assets, 3AC did not provide a balance sheet (audited or unaudited).In response to Voyager's formal due diligence questionnaire, 3AC then provided a description of its company, certificates of good standing and incorporation, and a copy of its anti-money laundering policies and controls.”
The committee found no evidence of fraud in the officers' actions. According to the court filing, Ehrlich and Psaropolous "are making additional contributions to the [reorganization] plan pursuant to agreements reached with the special committee." According to Bloomberg, Ehrlich will pay the company $1.125 million in cash as part of the committee's proposal, which is subject to the bankruptcy judge's approval. The company also has $20 million in directors' and officers' liability insurance.
All of you. Voyager Digital today filed an amended disclosure statement in its Chapter 11...
CEO Stephen Ehrlich and CFO Evan Psaropolous will keep their jobs even though they made a huge loan to Three Arrows Capital without due diligence sufficient.< /p>
New
Voyager Digital preferred not to sue its executives for incompetence, despite their role in approving a huge loan to Three Arrows Capital (3AC) without adequate due diligence. This loan was a key element leading to the bankruptcy of Voyager Digital. Court documents filed Oct. 17 show that an internal Voyager Digital special committee has proposed that CEO Stephen Ehrlich and Chief Commercial Officer (former CFO) Evan Psaropolous retain their jobs and not be sued.
The court filing outlines the due diligence process for the 3AC loan:
"On February 13, 2022, 3AC provided Voyager with a statement signed by one of its founders, Kyle Davies, containing a single sentence stating that 3AC's net asset value as of January 1, 2022 was $3.729 billion. Unlike other major borrowers of Voyager's assets, 3AC did not provide a balance sheet (audited or unaudited).In response to Voyager's formal due diligence questionnaire, 3AC then provided a description of its company, certificates of good standing and incorporation, and a copy of its anti-money laundering policies and controls.”
The committee found no evidence of fraud in the officers' actions. According to the court filing, Ehrlich and Psaropolous "are making additional contributions to the [reorganization] plan pursuant to agreements reached with the special committee." According to Bloomberg, Ehrlich will pay the company $1.125 million in cash as part of the committee's proposal, which is subject to the bankruptcy judge's approval. The company also has $20 million in directors' and officers' liability insurance.
All of you. Voyager Digital today filed an amended disclosure statement in its Chapter 11...
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