Shortly after filing for bankruptcy, cryptocurrency brokerage firm Voyager Digital has reportedly come under scrutiny from the US Federal Deposit Insurance Corporation (FDIC) for claiming that the funds were FDIC-insured.
- On Thursday (July 7, 2022), unidentified sources disclosed that the FDIC is investigating Voyager’s marketing, according to the Wall Street Journal. A statement on the company’s website in December 2019 said:
“Through our strategic relationship with our banking partner, Metropolitan Commercial Bank, all customers placed with Voyager are USD FDIC insured. This means that in the rare event that your USD funds are compromised, you will receive a full reimbursement. (up to $250,000) is guaranteed, so the cash you keep with Voyager is safe.”
- However, Voyager customers recently learned that their deposits were not FDIC-insured as marketed by the crypto firm.
- Furthermore, a previous statement from New York Chartered Bank and FDIC member, Metropolitan Commercial Bank (MCB), stated that Voyager only has an omnibus account for US dollars, not crypto. The bank said the insurance is applicable on failure of the MCB and not on Voyager.
“FDIC insurance coverage is available only to protect against Metropolitan Commercial Bank failure. FDIC insurance does not protect against Voyager failure, any acts or omissions of Voyager or its employees, or loss of value of cryptocurrency or other assets.
- The latest development comes shortly after Voyager and its subsidiaries filed for Chapter 11 bankruptcy. Earlier in July, the brokerage firm had banned deposits, withdrawals and trading.
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