US banking regulators from the US Federal Reserve (FED) and the Federal Deposit Insurance Corporation (FDIC) issued an order Thursday for Bitcoin and altcoin company Voyager Digital. It is worth noting that Voyager also has an altcoin named VGX. Corporations accuse Voyager of making “false and misleading” claims when telling clients that their funds are insured by the government. Here are the details…
FDIC to review Bitcoin and altcoin platform
On July 28, the FDIC announced that Voyager had launched an investigation into allegations of being insured with the FDIC through the firm’s partnership with Metropolitan Commercial Bank. The US Federal Reserve (FED) and the Federal Deposit Insurance Corporation (FDIC) sent a letter to the firm on Thursday saying they believed Voyager had misled customers by claiming that their funds in the company would be covered by the FDIC.
Together with the @FederalReserve, we issued a letter to #VoyagerDigital, demanding they cease and desist from making false and misleading statements on their FDIC deposit insurance status and take immediate action to correct these false statements. https://t.co/sWv1n7z710
— FDIC (@FDICgov) July 28, 2022
Voyager filed for bankruptcy on July 5 after the firm was revealed to be risking $661 million in failing crypto hedge fund 3AC. The Federal Deposit Insurance Corporation (FDIC) has launched an investigation into bankrupt crypto company Voyager Digital for allegedly cheating users. The FDIC is a consumer protection agency.
Now she is accused of claiming to be FDIC insured on her website, app and social media. The regulators’ order requires Voyager to immediately remove any representations or references suggesting that the FDIC has insured Voyager, customers will receive FDIC insurance coverage, or that the FDIC will insure customers against Voyager’s failure. It looks like Voyager has already taken steps to comply with this.
Voyager Digital has two days
In reality, the company had a deposit account with the Metropolitan Commercial Bank. Customers who invested through the company’s platform did not have FDIC insurance, according to regulators. “Based on the information collected to date, these statements appear likely to be misguided and trusted by customers who deposit their funds with Voyager and do not have immediate access to their funds,” the regulators said in a joint statement.
In a letter to company executives, regulators ordered the company to remove all misleading statements within two business days of receiving the letter. The regulators added that such action will not prevent agencies from taking further action against the firm in the future. As we reported on Kriptokoin.com, Voyager was one of the few crypto companies struggling in the wake of the wide crypto market turmoil. In its Chapter 11 bankruptcy filing earlier this month, Voyager estimated that it had more than 100,000 creditors and assets between $1 billion and $10 billion and debts of the same value.
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