Distressed acquisition below last-round valuation · Fatal mistake: Voyager Digital was a crypto brokerage with yield products. Had $650M in loans to Three Arrows Capital (3AC). When 3AC defaulted June 2022, Voyager couldn't return customer funds. Filed Chapter 11 July 5, 2022. FTX made bid to acquire Voyager for $1.4B in October 2022. FTX collapsed November 2022. Voyager sold assets to Binance.US instead.
Evaluating only Voyager Digital’s profile at its peak — without knowing the outcome — the model ranked Regulation as the #1 likely cause. Documented cause: Contagion.
Key Events Timeline
FOUNDING
FUNDING
CRISIS
SHUTDOWN
Full Analysis
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Documented cause
Voyager raised $120M. Had $650M 3AC loans. 3AC defaulted June 2022. Chapter 11 July 2022. FTX rescue bid $1.4B. FTX collapsed November 2022. Voyager sold to Binance.US.
Lesson
“Crypto brokerages must limit counterparty exposure to 5% of assets for any single counterparty — Voyager's $650M 3AC exposure represented 30%+ of assets, creating a single-counterparty risk that any credit underwriting would have prevented.”
Failure anatomy
Collapse type
Fire Sale
📉 MEDIUM
Hype cycle
Peak
Moat type
Network
Fatal mistake
Voyager Digital was a crypto brokerage with yield products. Had $650M in loans to Three Arrows Capital (3AC). When 3AC defaulted June 2022, Voyager couldn't return customer funds. Filed Chapter 11 July 5, 2022. FTX made bid to acquire Voyager for $1.4B in October 2022. FTX collapsed November 2022. Voyager sold assets to Binance.US instead.