Voyager Digital Decides Not to Sue Executives Over 3AC Loan

Voyager Digital's Decision on Executive Accountability

Voyager Digital has opted not to sue its top executives for their roles in approving a substantial loan to Three Arrows Capital (3AC), a decision that ultimately led to the company's financial downfall. Despite the lack of adequate due diligence in the loan process, CEO Stephen Ehrlich and former CFO Evan Psaropolous will retain their positions without facing legal action.

Court Filings Reveal Details of the 3AC Loan

Court documents filed on October 17 indicate that an internal special committee at Voyager Digital recommended against pursuing legal claims against the executives. The loan to 3AC, a key factor in Voyager's bankruptcy, was approved without sufficient due diligence, raising questions about the company's risk management practices.

Implications for Stakeholders

The decision not to hold executives accountable has sparked concerns among creditors and investors, who are seeking clarity on how such a high-risk loan was authorized. The lack of proper oversight in the deal has highlighted systemic issues in the company's financial decision-making processes.

Ongoing Scrutiny of Crypto Industry Practices

The situation underscores the broader challenges in the cryptocurrency industry, where risky investments and inadequate due diligence have led to significant financial losses. As regulators and stakeholders demand greater transparency, companies like Voyager Digital face increasing pressure to improve governance and accountability.