Within months of his appointment as chief financial officer of Voyager Digital Ltd, which filed for bankruptcy in July, Ashwin Prithipaul plans to step down. Stephen Ehrlich, the company’s CEO, will take over the position in the interim as the chief financial officer steps down after a “transition period.”
Cryptocurrency lenders like Voyager have flourished during the COVID-19 pandemic, attracting depositors with high interest rates and easy access to loans rarely offered by traditional banks.
However, inflation and subsequent interest rate increases by the US Federal Reserve led to a wide sell-off of the alternative asset class that dealt a heavy blow to several companies in the sector.
The digital asset exchange Coinbase Global Inc (COIN.O) and the cryptocurrency lender BlockFi have been forced to cut jobs, while the Singapore-based hedge fund Three Arrows Capital has filed for bankruptcy.