Fun

US Regulator Probes Bankrupt Crypto Lender Voyager Over Claims of FDIC Insurance

News Feed - 2022-07-09 01:07:17

US Regulator Probes Bankrupt Crypto Lender Voyager Over Claims of FDIC Insurance


The Federal Deposit Insurance Corporation (FDIC) is probing crypto lender Voyager Digital over claims that it is FDIC-insured. The crypto firm previously explained that through its strategic relationships with Metropolitan Commercial Bank, “all customers’ USD held with Voyager is FDIC insured.” Voyager Probed by FDIC


The Federal Deposit Insurance Corporation (FDIC) is looking into Voyager Digital Ltd. (TSE: VOYG) and its marketing of deposit accounts for cryptocurrency purchases, Reuters reported Thursday, citing confirmation by an FDIC official.


The FDIC is an independent agency created by Congress to maintain stability and public confidence in the nation’s financial system. It regulates and insures the deposits of a number of community banks and other financial institutions. “The standard insurance amount is $250,000 per depositor, per insured bank, for each account ownership category,” the regulator’s website details.


While crypto lender Voyager is not an FDIC-insured bank, it claimed to be FDIC-insured through a banking partner. The Voyager team wrote in a blog post back in December 2019: Through our strategic relationships with our banking partner, Metropolitan Commercial Bank, all customers’ USD held with Voyager is FDIC insured.


The official Twitter account of the crypto lender also tweeted many times, bragging about the company’s FDIC insurance. One of the tweets reads: “Have you heard? USD held with Voyager is FDIC insured up to $250K. Our customers’ security 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 customers’ USD held with the company is safe and FDIC-insured.



When Voyager suspended trading, deposits, and withdrawals last week, Metropolitan Commercial Bank, a New York-chartered bank and a member of the FDIC, issued a statement regarding FDIC coverage available to Voyager customers.


The bank explained that it “maintains an omnibus account” in U.S. dollars for the benefit of Voyager customers. While noting that Voyager customer funds held by Metropolitan Commercial Bank are insured by the FDIC up to $250,000, the bank stressed: FDIC insurance coverage is available only to protect against the failure of Metropolitan Commercial Bank. FDIC insurance does not protect against the failure of Voyager.


On Wednesday, Voyager said that it has filed for Chapter 11 bankruptcy. The crypto lender tweeted Sunday: “We currently have approximately $1.3 billion of crypto assets on our platform, plus claims against Three Arrows Capital of more than $650 million. We also have over $350 million of cash at Metropolitan Commercial Bank.” Tags in this story Crypto lender, cryptocurrency lender, FDIC insurance, FDIC insured, FDIC investigates voyager, Metropolitan Commercial Bank, Stephen Ehrlich, voyager, Voyager CEO Stephen Ehrlich, Voyager Digital, voyager FDIC insured


What do you think about the FDIC probing Voyager over claims that it is FDIC-insured? Let us know in the comments section below. Kevin Helms


A student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography. US and South Korea to Share Data on Crypto Cases, Including LUNA and UST Meltdown: Report REGULATION | 1 day ago Russian State Duma Adopts Law Banning Payments With Digital Financial Assets REGULATION | 2 days ago


Image Credits: Shutterstock, Pixabay, Wiki Commons Previous articleNew Lawsuit Claims Solana Is Unregistered Security — ‘Investors Have Suffered Enormous Losses’ Next articleUS Asks Japan to Pressure Crypto Exchanges, Miners Working With Russia, Report Unveils Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments More Popular NewsIn Case You Missed ItCentral Bank of Brazil Confirms It Will Run a Pilot Test for Its CBDC This Year


The Central Bank of Brazil has confirmed that the institution will run a pilot test regarding the implementation of its proposed central bank digital currency (CBDC), the digital real. Roberto Campos Neto, president of the bank, also stated that this ... read more.Today"s Top Ethereum and Bitcoin Mining Devices Continue to Rake in Profits Fed"s Bullard Wants to Raise Bank Rate to 3.5% by Year"s End, Hints at 75 Basis Point Rate Hike Survey: Adoption in Argentina Grows, With 12 out of 100 Adults Having Invested in Crypto Iran to Increase Penalties for Unauthorized Cryptocurrency Mining

News Feed

Israel announces plans for interest-bearing shekel CBDC
Zhiyuan Sun3 hours agoIsrael announces plans for interest-bearing shekel CBDCAlthough plans for a shekel CBDC have been in place since 2021, no pilot tests have since carried forward.4246 Total viewsListen to article 0:0
Jesse Coghlan6 hours agoBNB Smart Chain hit with copycat Vyper attack, $73K exploitedWhile Ethereum-based protocols have been hit with the majority of the exploit activity, BNB Smart Chain has also seen similar copycat e
Meta drops 15% on weak outlook and high AI and metaverse spending
Jesse Coghlan29 minutes agoMeta drops 15% on weak outlook and high AI and metaverse spendingMeta shares dipped after a disappointing Q2 revenue outlook and plans to spend nearly $100 billion this year as it aims to “in
MIND of Pepe Presale 3 Days Away from Ending – Last Chance to Buy the Best AI Agent Coin
Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and pu
SEC insists that Coinbase 'just does not like the answer'
Ciaran Lyons4 hours agoSEC insists that Coinbase "just does not like the answer"The United States SEC argues that “having made the weather, Coinbase cannot claim that it is now raining.”1513 Total views18 Total share
HUMAN Protocol Foundation Announce HMT Now Listed on Probit
HUMAN Protocol Foundation Announce HMT Now Listed on Probit press release PRESS RELEASE. The HUMAN Protocol Foundation is delighted to announce that HMT is now listed on Probit. Pro
MicroStrategy S&P 500 listing ‘probably not’ coming despite stellar performance
Andrew Singer9 hours agoMicroStrategy S&P 500 listing ‘probably not’ coming despite stellar performanceInclusion could boost the industry. “Anyone that owns an S&P 500 Index fund will own Bitcoin once MSTR
Felix Ng6 hours ago‘Extended reality’ to create 860K jobs by 2025: EU CommissionThe European Commission has laid out its plans for becoming a “world leader” in Web 4.0 and the Metaverse.1330 Total viewsListen to
Ethereum Foundation wallet moves 92K ETH after 7 years
Turner Wright7 hours agoEthereum Foundation wallet moves 92K ETH after 7 yearsThe Ether, worth roughly $290 million at the time of publication, had been at the same address since 2017.3135 Total views2 Total sharesListen
Report: Morocco Central Bank Governor Says Crypto Draft Law Now ‘Ready’
Report: Morocco Central Bank Governor Says Crypto Draft Law Now "Ready" A Moroccan draft crypto law, which seeks to protect individuals from the risks associated with crypto tradin
Launchpool Plans to Launch an Egalitarian Model for All Stakeholders
Launchpool Plans to Launch an Egalitarian Model for All Stakeholders Launchpool : noun – A group of crypto industry participants who pool together resource
Blockbank Integrates Orion․Money
Blockbank Integrates Orion․Money press release PRESS RELEASE. Blockbank is proud to announce that the existing partnership with Orion Money has extended to include a number of new