US watchdogs order Voyager Digital to stop making misleading insurance claims
The Federal Reserve System (FED) and the Federal Deposit Insurance Corporation (FDIC) have ordered Voyager Digital not to make false and misleading claims about the status of insurance for its customers.
Jointly letter Regulators said Voyager Digital’s misleading information about funds covered by FDIC insurance, sent to crypto companies on July 28, could have impacted their investments.
A Voyager Twitter post from November 12, 2020 indicates that Voyager’s US dollars have announced that they have up to $ 250,000 in FDIC insurance.
Are you listening? Voyager’s US dollars have up to $ 250,000 in FDIC insurance. Customer security is our number one priority. Start expanding your crypto portfolio today.
— Voyager (@investvoyager) November 12, 2020
Regulators said:
“Based on the information gathered so far, these expressions are likely to be misunderstood and seem to have been trusted by customers who have invested in Voyager and do not have immediate access to the funds.”
According to the letter, Voyager has a savings account at an insured Metropolitan Commercial Bank, but did not have an insurance license from the FDIC to provide to his customers.
Voyager is required to remove all misleading statements from all relevant Touchpoints within two business days. However, if you have legal evidence of FDIC deposit insurance, you can ask the regulatory agency for further clarification.
Voyager looking for an escape route
The cease and desist order from the regulator is the latest in a series of unfortunate events surrounding Voyager.
Due to the collapse of 3AC, Voyager suddenly stopped withdrawing customers. A few days later, Chapter 11 Bankruptcy. Voyager is currently seeking investor intervention to resolve creditors.
Sam Bankman-Fried’s FTX exchange has offered to buy all of Voyager’s assets and refund them to customers after trouble.But Voyager refused the offer, which “A low-ball bid dressed as a rescue of a white knight.”
Voyager said it is working on a restructuring process to withdraw FTX transactions and return maximum value to customers and stakeholders.
July 11 update, Voyager has launched a voluntary restructuring process to return funds to customers in cryptocurrencies and common stock. That is, in addition to its crypto asset holdings of about $ 1.3 billion, $ 650 million Debt due to the collapse of Three Arrows Capital (3AC).
