Following an internal investigation, crypto lender Voyager Digital intends to settle with two top employees over their management of loans made to crypto hedge fund Three Arrows Capital (3AC), according to court records presented on Monday. According to the documents, in March, CEO Stephen Ehrlich and then-Chief Financial Officer Evan Psaropoulos agreed to allow Voyager to lend Three Arrows almost $1 billion in cryptocurrency with very little financial disclosure from the firm. A special committee consisted of two Voyager board members determined that pursuing negligence claims against Ehrlich and Psaropoulos, who is now Voyager’s chief commercial officer, would be difficult and expensive, with little chance of recovery. Instead, Voyager proposes a settlement in which Ehrlich would pay $1.1 million in cash to Voyager, pursue claims under directors and officers insurance coverage for up to $20 million, and stay in their existing roles. The bankruptcy judge in the case must approve the settlement.
