The Federal Deposit Insurance Corporation (FDIC) issued a new advisory note on July 29, stating that it does not insure digital assets.
Voyager claimed that its deposits were insured by the regulator, which forced the regulator to issue the note.
According to the regulators, the statements of these crypto firms can create confusion and harm customers.
Regulators added,
Deposit insurance does not apply to the failure of a non-bank such as a crypto company. In addition, deposit insurance does not protect consumers with non-deposit products such as stocks, bonds, mutual funds, securities, commodities or crypto assets.
The FDIC also stated that it is “concerned about the risks of consumer confusion or loss from crypto assets provided through or in relation to insured depository institutions (insured banks). The risk is heightened when a non-bank The institution provides crypto assets to non-bank customers, while also offering deposit products from an insured bank.”
FDIC wrote Voyager
The FDIC wrote a letter to Voyager stating that the company violated Section 18(a)(4), 12 USC 1828(a)(4) of the Federal Deposit Insurance Act (“FDI Act”), which Prohibits any person from representing or saying that an insured deposit is insured.”
The regulator mandated the company to provide written confirmation of all steps taken to correct misrepresentation to the Board of Governors and the FDIC within two days.
But if the company believes the statement about FDIC deposit insurance is true and accurate, it must provide documents to back it.
However, regulators still reserve the right to take legal action against Voyager, even if it complies with requests to the letter.
While it is open to accepting bids, the firm has already rejected FTX’s offer, calling it a low-ball offer. A creditor has also objected to its restructuring plan, making a slightly different proposal.
What did you think of this topic? Write to us and let us know!