Following Voyager Digital’s application for bankruptcy protection during the first week of July, Federal Deposit Insurance Corporation (FDIC) and the Federal Reserve Board today issued a joint letter to the company demanding a cease and desist against Voyager’s FDIC claims. The FDIC’s letter explains that Voyager’s FDIC claims are false and misleading, and the entity prohibits anyone from “representing or implying that an uninsured deposit is insured.”
FDIC insists Voyager Digital published misleading and false Federal Deposit Claims
The Federal Reserve Board of the FDIC sent a letter on July 28th, 2022 to Voyager Digital Ltd. (TSE : VOYG). According to the letter, Voyager claims it misled investors regarding FDIC deposit insurance. Voyager is also accused of violating Federal Deposit Insurance Act.
“The FDIC and the Board of Governors of the Federal Reserve System have reason to believe that Voyager Digital, LLC, and its related-entities, by and through their officers, directors, and employees have made false and misleading statements, directly or by implication, concerning Voyager’s deposit insurance status, in violation of 12 U.S.C. § 1828(a)(4),” the letter sent to Voyager details.
The FDIC details that Voyager made false and misleading statements on the website, mobile application, and social media that suggested “Voyager itself is FDIC-insured,” “customers who invested with the Voyager cryptocurrency platform would receive FDIC insurance coverage,” and the “FDIC would insure customers against the failure of Voyager itself.” The FDIC letter to Voyager highlights that these claims are false. It states that:
These statements are misleading and false. Based on what we know, customers who have placed funds with Voyager have relied on these representations. They do not have access immediately to their funds.
Voyager has been given the task of rectifying the problem by correcting any incorrect statements that Voyager was insured by FDIC. Voyager has two business days to comply with the government’s request. If Voyager thinks the FDIC’s claims are inaccurate, the company can attempt to prove it via provided information and documentation.
The FDIC wants a “prompt response” or it will have to take “further action, as appropriate, with respect to the foregoing or any other violations of law or regulation, or unsafe or unsound banking practice.”
Voyager Digital was sent a FDIC Letter. It claimed that Voyager Digital made misleading and false statements claiming it was FDIC Insured. Please comment below to let us know your thoughts on this topic..
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