Voyager Digital CFO Exits After 5-Month Term

CEO Stephen Ehrlich will take over former CFO Ashwin Prithipaul’s duties in the interim

article-image

Blockworks exclusive art by axel rangel

share

key takeaways

  • Prithipaul worked at Voyager for barely five months
  • The lender’s creditors opposed an employee retention bonus proposal last month

Voyager Digital’s chief financial officer (CFO) resigned some three months after the crypto lender filed for bankruptcy.

Ashwin Prithipaul, who worked there for just five months, will leave after a transition period for other opportunities, the company said in a statement on Friday. CEO Stephen Ehrlich will take up his duties in the meantime.

“On behalf of the Board of Directors and the executive leadership team, I want to extend our sincerest gratitude to Ashwin for his many valuable contributions, especially for his efforts during Voyager’s restructuring process,” Ehrlich said in the statement. 

Prithipaul previously held CFO roles at financial brokerage DriveDigital and at crypto investment firm Galaxy Digital. It isn’t clear where Prithipaul is headed next.

Voyager is among a handful of crypto lenders hurt by the recent crypto market downturn. The unraveling of the market led by bankruptcies at Three Arrows Capital, Celsius and Voyager highlighted the perils of contagion and poor risk management. The firm had more than 100,000 creditors at the time of insolvency, but it has drawn ample interest to warrant competing bids for its remaining assets.  

Creditors objected to employee retention bonuses

The firm had wanted to pay retention bonuses to employees during its bankruptcy proceedings under a “key employee retention plan” proposal. It had marked 38 employees as key to the business due to their “valuable institutional knowledge” that would be expensive to replace quickly. If executed, the plan would’ve cost nearly $2 million. 

But Voyager’s creditors objected, saying the firm hadn’t provided enough reasons to warrant that decision. They also opposed the fact that Voyager had made no layoffs, unlike other crypto companies like Coinbase, Bitpanda, BlockFi and Blockchain.com. At the time, only 12 employees had left voluntarily. 

Voyager is set to liquidate its assets after an auction, with the final results set to be announced on Sept. 29 at 2:00 pm ET.


Start your day with top crypto insights from David Canellis and Katherine Ross. Subscribe to the Empire newsletter.

The Lightspeed newsletter is all things Solana, in your inbox, every day. Subscribe to daily Solana news from Jack Kubinec and Jeff Albus.

Tags

Upcoming Events

Salt Lake City, UT

MON - TUES, OCT. 7 - 8, 2023

Blockworks and Bankless in collaboration with buidlbox are excited to announce the second installment of the Permissionless Hackathon – taking place October 7-8 in Salt Lake City, Utah. We’ve partnered with buidlbox to bring together the brightest minds in crypto for […]

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

Research Report Cover Vertex.jpg

Research

The proliferation of new perp DEXs has led to fragmented liquidity across various DEXs and chains. Vertex, known for its vertically-integrated DEX that includes spot, perpetual, and integrated money markets, is now tackling cross-chain liquidity fragmentation through horizontal integration with the launch of new Edge instances. Vertex's integrated offerings and cross-margined account structure amplify the benefits of new instances: native cross-chain spot trading, optimized cross-chain basis trading, consistent interest rates, reduced bridging friction, and more.

article-image

Partnering with EtherFi and Angle, the fully on-chain perp DEX features bespoke collateral

article-image

Sponsored

Gavin Wood introduced the next evolutionary step for the Polkadot network: the Join-Accumulate Machine, or JAM

article-image

The side events were the places to be at Consensus 2024, according to attendees

article-image

Also, who’s come out swinging in the spot ether ETF fee war — and who could undercut them

article-image

I know it is not in their nature, but US regulators could learn a lot by researching the digital asset frameworks that overseas regulators have already gotten right

article-image

Also, the ETF hype train can count out at least one member