Voyager Digital, which unfortunately did not survive the collapse in the crypto markets, has not been able to get rid of the troubles in its head, even though it declared bankruptcy. This time, the Federal Deposit Insurance Corporation (FDIC) launched an investigation against the bankrupt Toronto-based crypto company Voyager Digital for allegedly cheating users.
FDIC Launches Investigation into Voyager Digital
The FDIC is an important actor, insuring user deposits, auditing financial institutions, including banks, for safety, and protecting investors in the event of bankruptcy. It has been reported that Voyager Digital, which stopped its withdrawals after the collapse in the crypto money markets and subsequently declared bankruptcy, marketed that it was covered by FDIC insurance through its partnership with its banking partner, Metropolitan Commercial Bank.
Looking at the investigations and allegations, it is thought that Voyager may have been sold insured by the FDIC.
On the other hand, an FDIC spokesperson told Bloomberg that only Metropolitan Commercial Bank is insured, not Voyager. As such, depositors are vulnerable to Voyager’s failure, including bankruptcy and loss of product value.
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