U.S. banking regulators from the Federal Reserve and Federal Deposit Insurance coverage Company issued a stop and desist order to embattled crypto agency Voyager Digital on Thursday. The companies accuse Voyager of creating “false and deceptive” claims in telling prospects their funds have been insured by the federal government.
On July 8, the FDIC introduced a probe into Voyager’s claims of being FDIC insured by the agency’s partnership with Metropolitan Industrial Financial institution.
“MCB is a depository establishment whose deposits are insured by the FDIC. The Board of Governors is the first federal regulator of MCB,” regulators stated. Briefly, MCB being FDIC insured doesn’t imply Voyager as an organization can also be FDIC insured.
Voyager filed for bankruptcy on July 5 after it was revealed the agency had a $661 million publicity to failed crypto hedge fund 3AC.
It’s now accused of claiming on its web site, app, and social media, of being FDIC-insured.
The regulators’ order calls for that Voyager instantly take away any and all statements, representations, or references that counsel that the FDIC insures Voyager, that prospects would obtain FDIC insurance coverage protection, or that the FDIC would insure prospects in opposition to the failure of Voyager.
it seems as if Voyager has already taken steps towards complying.
Within the authentic December 2019 weblog publish titled, “USD held with Voyager is now FDIC Insured,” Voyager claimed that the FDIC insurance coverage covers each Voyager and its banking accomplice’ in case of failure and that its mutual prospects are assured a full reimbursement of as much as $250,000.
In a July 2022 replace, “Is the USD in my account FDIC insured?” the web site now says USD in a buyer’s Voyager money account is held at MCB and is FDIC insured there.
“Meaning you’re lined within the occasion of MCB’s failure, as much as a most of $250,000 per Voyager buyer. FDIC insurance coverage doesn’t shield in opposition to the failure of Voyager, however to be clear: Voyager doesn’t maintain buyer money, that money is held at MCB.”
Voyager has equally up to date the unique weblog publish.
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The order then calls for Voyager present written proof that the agency has complied with the order inside two enterprise days of receiving the letter.
“Such affirmation shall element the efforts that Voyager took to adjust to this letter, together with all steps undertaken by Voyager to establish and find all such misrepresentations,” the order says.
