- Voyager claims that the company is FDIC- insured
- Fed neglected the claim and ordered to remove the “false” claims
Voyager Digital, a crypto lender has been ordered to evict “wrong and ambiguous” statements that its user’s deposit accounts are FDIC insured.
On July 28, Seth Rosebrockfrom and Jason Gonzalez, Assistant General Counsel at the Federal Reserve and the Federal Deposit Insurance Corporation (FDIC) wrote a joint letter to Voyager Digital in which they stated that the portrayal is probably bluffed and was dependent upon the clients who kept their funds with the company and currently they have no access to it.
“These portrayals are wrong and bluffed and, based on the facts and details we have to date, it looks like that the portrayals are probably bluffed and were dependent upon by clients who kept their funds with the company and currently can not access it.”
The Fed and FDIC claim that the company has made many portrayals online on its website, mobile application, and social media platforms which indicated that it was:
“Our company is FDIC-insured; (2) The clients who will invest in our cryptocurrency company will be benefited as the insurance will cover all types of fund which is given to, kept in, or with the company (3) the insurance will also help if the company is filed for bankruptcy.”
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Voyager filed for bankruptcy
In the letter, the authors ordered the company to give a written confirmation of its agreement with the director’s requests within two working days, and also give full details of all statements related to FDIC insurance within 10 business days.
The letter also alerted the company by stating that if the company fulfills the demand which is written in the cease-and-desist letter, it will not stop the regulator from taking any kind of action against the company if found correct.
Presently, the website of the company presents that at the beginning of 2021 and 2022 the company and FDIC worked together to improve and upgrade things around the FDIC insurance.
FDIC insurance says that the USD in the Voyager cash account is covered up by FDIC insurance and is kept at Metropolitan Commercial Bank (MCB).
“The insurance does not cover any collapse of the company, but the company does not keep clients money and the money is kept at the Metropolitan Commercial Bank”
Voyager Digital filed for bankruptcy on July 6 with $10 billion of debts and almost 100,000 creditors in between market disturbances that originally started with the decline in the Terra ecosystem.
Source: https://www.thecoinrepublic.com/2022/07/30/fed-claimed-voyager-to-evict-false-claims-that-deposits-are-fdic-insured/