US authorities urge Voyager to remove references to FDIC deposit protection

Fed and FDIC sent a letter to Voyager Digital, demanding within 10 days a full list of all statements concerning government deposit insurance for the crypto broker.

Assistants to the general counsels of the two agencies, Seth Rozbrokfrom and Jason Gonzalez, also urged Voyager’s management to provide written confirmation of compliance with the regulator’s requirements within two business days.

They reserved the right to take further steps if they deem it appropriate.

“These statements [about deposit protection] are false and misleading. Based on the information currently available, clients who placed their funds with Voyager and lost direct access to them relied on them,” the letter states.

The crypto broker posted on its site, in its mobile app and on social networks the following wording:

• Voyager is part of the FDIC deposit insurance system;
• clients who invested in the Voyager crypto platform will receive insurance coverage from the federal corporation for all funds provided to the crypto broker;
• FDIC will insure clients against Voyager’s bankruptcy.

On site Voyager says that client fiat funds are held at Metropolitan Commercial Bank, which is a member of the FDIC system. Funds up to $250,000 are insured.

On the Metropolitan Commercial Bank site, it says that the bank maintains an “omnibus account, intended for Voyager clients.” The assets held there are insured by the federal corporation, but coverage is available “solely to protect the bankruptcy of the lending institution.”

Earlier, it was reported on July 8 that the FDIC was examining Voyager Digital.

On July 5, the crypto broker Voyager Digital filed for bankruptcy in a New York court. The company’s liabilities are estimated to be between $1 billion and $10 billion with around 100,000 customers.

Follow ForkLog’s Bitcoin news on our Telegram — crypto news, prices and analysis.