Voyager Estimates Quarterly Revenue Doubled in Q4 Despite Lawsuit

Lawsuit filed against company alleges Voyager charged hidden fees and made false promises to platform users


Source: Voyager


key takeaways

  • Voyager’s total verified users grew from 159,000 at the end of 2020 to 3.2 million on Dec. 31, as it gained about 1 million users in the fourth quarter
  • Company calls complaint accusing Voyager of charging hidden fees and making false promises to users “without any merit”

Voyager Digital’s estimated revenue for the fourth quarter of 2021 was double the previous quarter as the crypto platform’s users increased by roughly 1 million during the three-month span.

The publicly traded cryptocurrency platform’s preliminary revenue estimates for the quarter are $165 million, the company revealed on Wednesday. This is up from Voyager’s $81.5 million of total revenue during the third quarter. Preliminary total revenue for 2021 is roughly $415 million, compared to $6.6 million during 2020, according to Voyager.

Total verified users grew from 159,000 at the end of 2020 to 3.2 million, with about 1 million joining the platform during the fourth quarter. Total funded accounts reached nearly 1.1 million on Dec. 31, up from 43,000 a year ago. 

“In 2021, we scaled our technology to accommodate rapid growth as mainstream crypto adoption accelerated,” Voyager CEO Steve Ehrlich said in a statement. “Now, with our platform and technological capabilities enhanced, 2022 marks the next phase of Voyager’s growth through product and geographic expansion, alongside marketing efforts to reach new customers.”

Voyager Chief Marketing Officer Pam Kramer recently told Blockworks that the company would create more video-driven content that highlights consumer voices and consider partnerships in industries beyond the sports world. 

Ehlrich noted in a statement that Voyager’s team has grown from 35 employees to 250 employees during the year. It will look to continue growing as it expands into NFTs, the metaverse and its own custody solution. 

The company also plans to launch its debit card, add credit products and equity trading, and roll out offerings in Europe and Canada. Voyager could look to accelerate its growth through mergers and acquisitions when appropriate, Ehrlich added.

Voyager announced in August that it was set to acquire crypto payment platform Coinify to accelerate its international expansion and bolster its capabilities in the payment space. 

Lawsuit filed against Voyager

Voyager’s latest results follow the filing of a class action lawsuit against the company. 

The complaint, announced by law firm Grossman Roth Yaffa Cohen, was filed on behalf of Florida resident Mark Cassidy in a Miami federal court on Dec. 24. It alleges that Voyager charged hidden fees and made false promises to platform users.

Litigation may result in over $1 billion in compensation for Voyager users, according to the law firm’s Wednesday announcement.

“This action is absolutely spurious and without any merit, whatsoever,” a Voyager spokesperson told Blockworks in an email. “We look forward to dealing with this matter through the appropriate legal channels.”

The complaint claims that the bid-ask spread — the difference between the highest bid a buyer is willing to offer and the lowest bid a seller is willing to accept — “is kept intentionally wide” on the cryptocurrencies listed on Voyager’s platform.

“Although the Voyager defendants will display a ‘Fair Market Price’ for each cryptocurrency, which falls somewhere in the middle of the spread, the Voyager defendants’ systems will automatically execute market orders at the highest end of the spread, from which they pocket secret commissions,” the complaint states. 

The complaint also says that the company is “targeting unsophisticated investors with false and misleading promises of reaping large profits in the cryptocurrency market.” It highlights comments made by Ehlrich and Dallas Mavericks owner Mark Cuban in October after the company partnered with the NBA team.

“The investing world is depending upon cryptocurrency brokers to be governed and self-governed as would the best traditional investment brokers and their firms,” trial lawyer Stuart Grossman said in a statement. “Just because crypto is its own universe and not easily understood does not make it a playground for taking advantage of its investors’ trust and money.”

A spokesperson for Grossman Roth Yaffa Cohen did not immediately return Blockworks’ request for comment about next steps for the suit, or if the law firm has sued, on behalf of clients, Voyager or other crypto companies in the past.

Get the day’s top crypto news and insights delivered to your inbox every evening. Subscribe to Blockworks’ free newsletter now.


    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


    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.


    I’ve come to the realization that more attention is needed to create and sculpt the digital spaces where we live


    The NYSE went down yesterday after a glitch caused a string of erroneous trades. Does DeFi fix this?


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



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


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


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