Voyager Digital
BankruptLending · $VGX · born 2018 · ✝ 2022
A public brokerage with a private 3AC-sized hole.
A publicly-traded crypto broker offering rewards on deposits. A massive unsecured loan to 3AC defaulted and pushed it into bankruptcy.
- Peak
- $5.9B assets
- Cause
- Bankrupt
- Year of death
- 2022
☠️ Cause of death
An unsecured ~$650M loan to 3AC went bad. Customer assets were not segregated and 'FDIC' messaging proved misleading.
📓 Lessons left behind
- —Unsecured lending to one whale is a bet on one whale.
- —Marketing 'insurance' you don't have is fatal.
- —Public listing is not solvency.
🌱 The idea that survived
Segregated brokerage custody
Clear customer-asset segregation and honest risk disclosure are now table stakes for any crypto brokerage that wants to survive.
#broker#3ac#bankruptcy