![]() When it came to lending that money out … not so much. Short version: Voyager was pretty good at attracting deposits. So how did a once mighty and well-regarded crypto lending outfit get here? But, also according to Ehrlich (who did not respond to a request for comment for this story), Voyager has a brighter future: “Debtors have a viable business and a plan for the future.” (Under Chapter 11, the company is seeking to reorganize rather than liquidate.) “The Debtors are facing a short-term ‘run on the bank,’” according to a statement Ehrlich filed alongside bankruptcy papers. Just days later, it filed for bankruptcy protection in New York. That alone was apparently a mortal wound. That failed hedge fund now appears to have defaulted on all of its obligations, and its founders are reportedly fugitives. The Jersey City, N.J.-based company is now known to have made immense unsecured loans to Three Arrows Capital (3AC). Ehrlich’s sunny optimism has yielded a rotten harvest. We all remember 2017.”Īs it turns out, 2021 was actually a lot like 2017 – both were quickly followed by a brutal crypto market crash. Speaking in 2021, CEO Steve Ehrlich said that “I think the market looks completely different today from what it looked like in 2017. Leadership seemed barely able to conceive of a bear market, much less its consequences. Voyager’s future, until recently, looked bright. It was a crypto lending and trading powerhouse – one of the few digital asset brokerages listed on stock markets anywhere in the world (albeit in Canada rather than the U.S., its home country). Ninety-seven percent of Voyager’s clients stored less than $10,000 on the platform, indicating a broad base of individual investors. At its height, Voyager Digital boasted 3.5 million users (roughly what Coinbase boasted in 2015) and $5.9 billion in assets, comparable to a small regional bank or respectable wealth management firm.
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