US regulators accuse Voyager of making false claims about insuring customer funds
The crypto lender’s website says that deposited customer assets are insured by the Federal Deposit Insurance Corporation
29.07.2022 - 12:30
372
2 min
0
What’s new? The Federal Reserve System (Fed) and the US Federal Deposit Insurance Corporation (FDIC) sent a letter to the bankrupt Voyager Digital demanding it remove “false and misleading” claims that the crypto lender’s deposited customer funds are insured by the FDIC. The letter notes, however, that even if Voyager complies, this will not prevent regulators from taking further action against it, if deemed appropriate.
Letter from the Fed and the FDIC
What else does the letter say? The Fed and the FDIC attributed to false the following statements made on the company’s website, mobile app, and social media:
“(1) Voyager itself is FDIC-insured; (2) customers who invested with the Voyager cryptocurrency platform would receive FDIC insurance coverage for all funds provided to, held by, on, or with Voyager; and (3) the FDIC would insure customers against the failure of Voyager itself.”
The FDIC began investigating the broker’s marketing strategy back in early July. Thus, the company claimed that customer funds were covered by FDIC insurance through Voyager’s partnership with Metropolitan Commercial Bank. However, Metropolitan Commercial Bank itself said that FDIC insurance coverage is only due to the broker’s customers in the event of bankruptcy of the bank itself, not Voyager’s bankruptcy.
The broker, for its part, unveiled a plan to recover fiat funds where it claimed that even if the bank refuses, customers’ losses would be compensated by the FDIC.
Voyager situation. On July 1, the platform suspended all operations, including withdrawals. It had about $685 million in cryptocurrency in its accounts and the volume of loans issued exceeded $1,1 billion. Half of this amount was allocated to the bankrupt hedge fund Three Arrows Capital.
Useful material?
Technologies
Network fees will be integrated into the cost of swaps
Nov 22, 2024
Market
The company’s unrealized profits from investing in its first cryptocurrency approached $14 billion
Nov 19, 2024
Incidents
The search, the reason for which was not announced, took place a week after the election, the results of which Polymarket users predicted quite accurately
Nov 14, 2024
Market
Analysts point to the growing popularity of the first cryptocurrency as a safe haven asset
Nov 13, 2024
Market
The product will begin trading on the Swiss Exchange on November 19
Nov 12, 2024
Market
The company’s unrealized profits from investing in the first cryptocurrency approached $13 billion
Nov 12, 2024