Voyager Draws Scrutiny from FDIC: Report

Cryptocurrency broker Voyager Digital (owned by FTX CEO Sam Bankman-Fried in terms of shares holding) has reportedly got into trouble once again

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According to reports, the Federal Deposit Insurance Corporation (FDIC) wants to find out whether the firm could have misled its clients when it said that they are guaranteed a full reimbursement (up to $250,000) should theirs money be compromised “due to the company” or its banking partner’s failure.

According to the Wayback Machine data, Voyager Digital was promising to its clients back in 2021 that even in the case the company or its banking partner somehow were to face damages, the clients could be sure — their funds are insured by FDIC.

“Through our strategic relationships with our banking partners, all customers’ USD held with Voyager is now FDIC insured. That means that in the rare event your USD funds are compromised due to the company or our banking partner’s failure, you are guaranteed a full reimbursement (up to $250,000).”

However, at least starting from July this year that same page is no longer saying anything about failure on the broker’s side:

“Through our strategic relationships with our banking partner, Metropolitan Commercial Bank, all customers’ USD held with Voyager is FDIC insured. That means that in the rare event your USD funds are compromised, you are guaranteed a full reimbursement (up to $250,000), so the cash you hold with Voyager is protected.”

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What’s more is that Metropolitan Commercial Bank reportedly informed Voyager customers that FDIC insurance coverage doesn’t work in the current events as FDIC insurance would only be offered if the bank itself failed, not the broker.

The FDIC is now looking into how the bankrupt broker marketed itself to customers.

In early July, Voyager Digital suspended trading, deposits, withdrawals and loyalty rewards, citing “current market conditions” after Three Arrows Capital (3AC) failed to repay over 15,250 BTC and $350 million in USDC.

The company added that it was still “actively pursuing all available remedies” for recovery from 3AC. A few days later, the broker filed for bankruptcy under chapter 11 “to maximize value for all stakeholders.”

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