United States Regulator Probes Bankrupt Crypto Lender Voyager Over Claims of FDIC Insurance

United States Regulator Probes Bankrupt Crypto Lender Voyager Over Claims of FDIC Insurance

The Federal Deposit Insurance Corporation (FDIC) is penetrating crypto loan provider Voyager Digital over claims that it is FDIC-insured. The crypto company formerly discussed that through its tactical relationships with Metropolitan Commercial Bank, “all consumers’ USD accepted Voyager is FDIC guaranteed.”

Voyager Probed by FDIC

The Federal Deposit Insurance Corporation (FDIC) is checking out Voyager Digital Ltd. (TSE: VOYG) and its marketing of bank account for cryptocurrency purchases, Reuters reported Thursday, pointing out verification by an FDIC authorities.

The FDIC is an independent firm developed by Congress to keep stability and public self-confidence in the country’s monetary system. It manages and guarantees the deposits of a variety of neighborhood banks and other banks. “The basic insurance quantity is $250,000 per depositor, per guaranteed bank, for each account ownership classification,” the regulator’s site information.

While crypto lending institution Voyager is not an FDIC-insured bank, it declared to be FDIC-insured through a banking partner. The Voyager group composed in an article back in December 2019:

Through our tactical relationships with our banking partner, Metropolitan Commercial Bank, all consumers’ USD accepted Voyager is FDIC guaranteed.

The main Twitter account of the crypto lending institution likewise tweeted sometimes, extoling the business’s FDIC insurance. Among the tweets checks out: “Have you heard? USD accepted Voyager is FDIC guaranteed as much as $250 K. Our clients’ security is our leading concern. Start growing your crypto portfolio today.”

On a number of events, the crypto loan provider ensured Twitter users who questioned its FDIC insurance that consumers’ USD accepted the business is safe and FDIC-insured.

When Voyager suspended trading, deposits, and withdrawals recently, Metropolitan Commercial Bank, a New York-chartered bank and a member of the FDIC, provided a declaration relating to FDIC protection offered to Voyager consumers.

The bank described that it “keeps an omnibus account” in U.S. dollars for the advantage of Voyager clients. While keeping in mind that Voyager client funds held by Metropolitan Commercial Bank are guaranteed by the FDIC approximately $250,000, the bank worried:

FDIC insurance protection is readily available just to safeguard versus the failure of Metropolitan Commercial Bank. FDIC insurance does not safeguard versus the failure of Voyager.

On Wednesday, Voyager stated that it has actually applied for Chapter 11 personal bankruptcy. The crypto loan provider tweeted Sunday: “We presently have roughly $1.3 billion of crypto properties on our platform, plus claims versus Three Arrows Capital of more than $650 million. We likewise have more than $350 countless money at Metropolitan Commercial Bank.”

Tags in this story

Crypto loan provider, cryptocurrency lending institution, FDIC insurance, FDIC guaranteed, FDIC examines voyager, Metropolitan Commercial Bank, Stephen Ehrlich, voyager, Voyager CEO Stephen Ehrlich, Voyager Digital, voyager FDIC guaranteed

What do you consider the FDIC penetrating Voyager over claims that it is FDIC-insured? Let us understand in the remarks area listed below.

Kevin Helms

A trainee of Austrian Economics, Kevin discovered Bitcoin in 2011 and has actually been an evangelist since. His interests depend on Bitcoin security, open-source systems, network results and the crossway in between economics and cryptography.

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