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CFO of bankrupt crypto lender Voyager to step down months after appointment

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CFO of bankrupt crypto lender Voyager to step down months after appointment

Ashwin Prithipaul, chief financial officer of bankrupt crypto lender Voyager Digital Ltd, is expected to leave the company. The crypto firm said on Friday that the chief financial officer would step down after a “transition period” to pursue other opportunities and that chief executive Stephen Ehrlich would assume the role on an interim basis.

Prithipaul has been the company’s chief financial officer since May, according to his LinkedIn profile. In the past, he was CFO of crypto exchange DriveDigital for nine months, and before that he was CFO of crypto investment firm Galaxy Digital.

Voyager Digital collapsed due to its cash flow problems during the harsh winter period which began in May this year. As a result, the company filed an application Chapter 11 Bankruptcy in July to help contain the situation after to suspend withdrawals on its platform.

The crypto winter triggered by the collapse of the Terra algorithm and its ecosystem has led to the crash of almost all cryptocurrencies and plunged the entire industry into crisis.

Many crypto-related businesses have struggled to maintain their footing. Voyager has become one of the most high-profile crypto companies to fail amid this year’s stock market crash. The company filed for Chapter 11 bankruptcy in July with outstanding debts of up to $10 billion.

The company’s downfall came shortly after one of its biggest debtors, the Singapore-based crypto hedge fund. Three Arrows Capital (3AC), filed for bankruptcy in July, leaving its users’ funds at risk. 3AC from Traveling over $650 million in the USDC and Bitcoin stablecoin.

Voyager has initiated the process of selling its assets by bidding exercise at the beginning of this month. The auction of the New York-based company’s assets began on September 13.

Crypto exchanges Binance and FTX reportedly made the best offers of around $50 million each for Voyager’s assets. But Binance’s current offer is considered to be slightly higher than that offered by FTX. Other bidders reportedly included digital asset investment manager Wave Financial and digital currency trading platform CrossTower.

The announcement of the winning bid is expected on September 29, although it could come earlier before that date.

Image source: https://www.Reuters.com/business/finance/bankrupt-crypto-lender-voyagers-cfo-exit-months-after-appointment-2022-09-23/

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