Washington – The Federal Deposit Insurance Corporation (FDIC) and the Federal Reserve Board have joined forces to demand an immediate halt to false and misleading statements by crypto brokerage firm Voyager Digital. The agencies allege that Voyager, along with certain executives and employees, falsely claimed on its website, mobile app, and social media channels that:
- Voyager itself was FDIC-insured;
- Investors using the Voyager cryptocurrency platform would receive FDIC insurance coverage for their funds; and
- The FDIC would cover customers against the failure of Voyager.
This brazen deception is flagged as potentially misleading, causing confusion among investors who placed their funds with Voyager. The agencies assert that these claims are entirely false and have likely caused harm to unsuspecting customers.
Under the Federal Deposit Insurance Act, it is illegal for any individual or entity to misrepresent the insurance status of deposits. While Voyager maintains a customer deposit account at Metropolitan Commercial Bank (an FDIC-insured institution), Voyager itself is not FDIC-insured, leaving investors without coverage in case of Voyager’s failure.
The FDIC deposit insurance program safeguards customers against bank failures, but it does not apply to crypto exchanges like Voyager. To verify an institution’s insurance status, customers are advised to consult the FDIC’s BankFind tool or contact the institution directly.
The agencies have issued a stern letter to Voyager Digital, calling for immediate corrective action and demanding that the deceptive statements cease. The FDIC has also provided a comprehensive FAQ section for those seeking more information about deposit insurance.
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Key Facts
- Agency: FDIC
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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