Federal Deposit Insurance Corporation (FDIC), is looking into Voyager Digital’s claims to be 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.”
FDIC probes Voyager
Federal Deposit Insurance Corporation (FDIC), Reuters reported Thursday that Voyager Digital Ltd. was under scrutiny for its marketing of cryptocurrency purchase deposit accounts.
The FDIC is an independent agency created by Congress to maintain stability and public confidence in the nation’s financial system. The FDIC regulates and protects deposits at a variety of financial institutions and community banks. “The standard insurance amount is $250,000 per depositor, per insured bank, for each account ownership category,” the regulator’s website details.
Although Voyager, a crypto-lender, isn’t an FDIC insured bank but claimed it was FDIC-insured by a partner. In a December 2019 blog post, the Voyager team stated:
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? Voyager holds USD that 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.
Metropolitan Commercial Bank (a New York-chartered Bank) issued a statement about FDIC coverage to Voyager clients after Voyager temporarily suspended trades, withdrawals, and deposits last week.
The bank explained that it “maintains an omnibus account” in U.S. dollars for the benefit of Voyager customers. Although the bank acknowledged that Voyager customer funds kept by Metropolitan Commercial Bank were insured up to $250,000 by the FDIC, it stressed the following:
FDIC coverage does not cover the loss of Metropolitan Commercial Bank. Voyager can’t be protected by FDIC Insurance.
Voyager declared Wednesday that it filed 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.”
Do you have a reaction to Voyager’s claims it is FDIC insured? Please comment below.
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