The Federal Deposit Insurance Corporation (FDIC) is investigating claims that crypto lender Voyager Digital is FDIC insured. The crypto company previously explained that through its strategic relationship with Metropolitan Commercial Bank, “all customer USD held at Voyager are FDIC insured.”
Voyager was investigated by the FDIC
The Federal Deposit Insurance Corporation (FDIC) is investigating Voyager Digital Ltd. (TSE: VOYG) and its marketing of deposit accounts for cryptocurrency purchases. (TSE: VOYG) and the marketing of deposit accounts for the purchase of cryptocurrency, Reuters reported on Thursday, citing confirmation from FDIC officials.
The FDIC is an independent agency created by Congress to maintain the stability of the nation’s financial system and public confidence. The FDIC is a nonprofit organization that provides financial services to the public, including the FDIC’s own insurance program. “The standard insurance amount is $250,000 per depositor, per insured bank, for each account ownership category,” the regulator’s website details.
Crypto lender Voyager is not an FDIC-insured bank, but claimed to be FDIC-insured through its bank partners.The Voyager team wrote in a blog post back in December 2019:
Through our strategic relationship with our banking partner, Metropolitan Commercial Bank, USD of all clients held at Voyager are FDIC insured.
The crypto lender’s official Twitter account also touts its FDIC insurance in a number of tweets. One of the tweets reads, ” Have you heard? Every US dollar held at Voyager is FDIC insured up to $250K. The security of our clients is our top priority. Start growing your crypto portfolio today.”
On several occasions, the crypto lender assured Twitter users who doubted its FDIC insurance that the customer USDs held at the company were secure and FDIC insured.
When Voyager suspended transactions, deposits, and withdrawals last week, Metropolitan Commercial Bank, a chartered New York bank and FDIC member, told Voyager’s statementregarding the FDIC coverage available to Voyager’s customers.
The bank explained that it “maintains an omnibus account” in U.S. dollars for Voyager customers, noting that Voyager customer funds held by Metropolitan Commercial Bank are insured by the FDIC to $250,000. The bank emphasized that.
FDIC insurance is only available to protect against the failure of Metropolitan Commercial Bank; FDIC insurance does not protect against the failure of Voyager.
On Wednesday, Voyager said it had filed for Chapter 11 bankruptcy. The crypto lender tweeted Sunday.” We currently have approximately $1.3 billion in crypto assets on our platform, plus over $650 million in claims against Three Arrows Capital. We also have over $350 million in cash at Metropolitan Commercial Bank.”
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