Voyager Settles with Execs Over $1B 3AC Loan: What Happened?

Crypto lender Voyager Digital has agreed to settle claims against company executives who approved a risky nearly $1 billion loan to failed crypto hedge fund Three Arrows Capital (3AC). The troubled firm filed for chapter 11 bankruptcy in July after the now defunct crypto hedge fund Three Arrows Capital (3AC) defaulted on a crypto loan valued at $935 million.

The Voyager sale plan proposal contains plans to settle with executives over their alleged roles in the nearly $1 billion loan to collapsed hedge fund 3AC. The Voyager sale plan proposal includes plans to settle with executives over their potential missteps in the loan to bankrupt crypto hedge fund Three Arrows Capital. The settlement aims to resolve accusations surrounding the due diligence and approval process of this massive loan.

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 following an investigation into the circumstances surrounding the loan's approval.

Chief Executive Officer Stephen Ehrlich, in consultation with then-Chief Financial Officer Evan Psaropoulos, agreed to let Voyager lend nearly $1 billion of crypto to 3AC. Details of the settlement are still emerging, but the agreement underscores the significant repercussions of the 3AC collapse and the ensuing scrutiny of Voyager's risk management practices.

This settlement marks a crucial step in Voyager's bankruptcy proceedings and its efforts to compensate creditors affected by the 3AC default. Stay tuned for further updates on the Voyager Digital settlement and its implications for the broader crypto lending industry.