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Nw: End Lying to Customers, Fed and FDIC Insist Voyager

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The Federal Reserve and Federal Deposit Insurance Corporation like ordered the bankrupt crypto platform Voyager to reside misleading its prospects about its deposit insurance location.

Key Takeaways

  • The Federal Reserve and Federal Deposit Insurance Corporation despatched a discontinuance and desist remark to Voyager Digital Thursday. It ordered the crypto lender to reside misleading its prospects and purchase all references about being insured by the executive.
  • Per the companies, Voyager shared “groundless and misleading” claims and references about being FDIC-insured on more than one instances.
  • The regulators also gave Voyager two days to acknowledge with a letter outlining the total steps the agency has taken to conform with the dispute.

The two institutions called Voyager’s deposit insurance claims “groundless and misleading.”

Voyager Ordered to End Misleading Customers

Voyager Digital allegedly lied to its prospects that the executive used to be insuring its deposits.

The Federal Reserve and the Federal Deposit Insurance Corporation like issued a discontinuance and desist dispute urging the embattled crypto lender to reside telling its prospects their funds are insured by the executive. In a joint letter printed Thursday, the U.S. banking regulators said that the bankrupt broker made varied “groundless and misleading” statements relating to the FDIC insurance location of the agency and its prospects’ deposits. The letter said:

“Voyager has made varied representations online, including its internet website, cell app, and social media accounts, stating or suggesting that: (1) Voyager itself is FDIC-insured; (2) prospects who invested with the Voyager cryptocurrency platform would receive FDIC insurance protection for all funds supplied to, held by, on, or with Voyager; and (3) the FDIC would insure prospects against the failure of Voyager itself.”

Contain you heard? USD held with Voyager is FDIC insured as a lot as $250Ample. Our prospects’ safety is our top priority. Originate rising your crypto portfolio on the present time.

— Voyager (@investvoyager) November 12, 2020

Voyager has claimed on more than one instances that its funds are insured by the FDIC. “USD held with Voyager is FDIC insured as a lot as $250Ample. Our prospects’ safety is our top priority. Originate rising your crypto portfolio on the present time,” the company posted in a November 2020 tweet.

On July 8, the FDIC probed Voyager for claiming it used to be FDIC-insured thru its partnership with the Metropolitan Commercial Financial institution. Whereas Voyager maintained deposit accounts with the FDIC-insured monetary institution, the companies clarified that “Voyager is no longer itself insured by the FDIC,” which implies that depositors were no longer protected against the broker’s failure.

Per the companies, Voyager’s public claims seemingly misled many customers into investing with the agency under the groundless influence that the executive had insured their funds. The regulators ordered the broker to straight purchase all public statements and references suggesting FDIC protection of the agency or its prospects’ deposits and send a letter to the companies outlining the total steps it took to conform with the directive.

Voyager filed for Chapter 11 chapter on July 6 after the now-bankrupt hedge fund Three Arrows Capital defaulted on a $665 million loan from the broker. On July 22, the cryptocurrency change FTX supplied to employ the agency’s crypto resources and loans—excluding loans to Three Arrows—and utter them to reimburse prospects struggling from the chapter straight. Alternatively, Voyager’s attorneys refused FTX’s buyout proposal, calling it a “low-ball notify dressed up as a white knight rescue.”

Disclosure: At the time of writing, the author of this text owned ETH and several other other cryptocurrencies.

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