The Federal Deposit Insurance coverage Company (FDIC) and the Federal Reserve Board at this time issued a joint letter demanding that the crypto brokerage agency Voyager Digital stop and desist from making false and deceptive statements concerning its FDIC deposit insurance coverage standing and take speedy motion to right any such prior statements.
In response to the businesses, Voyager and sure officers and staff made numerous statements on-line, together with on its web site, cellular app, and social media accounts, stating or suggesting that:
- Voyager itself is FDIC-insured;
- Clients who invested with the Voyager cryptocurrency platform would obtain FDIC insurance coverage protection for all funds offered to, and held by, Voyager, regardless of the insured depository establishment account; and
- The FDIC would insure prospects in opposition to the failure of Voyager itself.
These representations are false and deceptive. Based mostly on the knowledge gathered up to now, it seems that these representations possible misled and have been relied upon by prospects who positioned their funds with Voyager and don’t have speedy entry to their funds.
The Federal Deposit Insurance coverage Act, nonetheless, prohibits any individual from representing or implying that an uninsured deposit is insured or from knowingly misrepresenting the extent and method through which a deposit legal responsibility, obligation, certificates, or share is insured below that Act. The FDIC is permitted to implement this prohibition in opposition to any individual.
Voyager maintains a deposit account for the advantage of its prospects at Metropolitan Business Financial institution, which is supervised by the Board. Voyager isn’t itself insured by the FDIC, although, and so prospects who invested by its cryptocurrency platform wouldn’t obtain insurance coverage protection within the occasion of Voyager’s failure.
The FDIC deposit insurance coverage program protects prospects within the occasion of the failure of an FDIC-insured financial institution. To find out if an establishment is FDIC-insured, you possibly can ask a consultant of the establishment, search for the FDIC signal on the establishment, or use the FDIC’s BankFind device. For extra details about FDIC deposit insurance coverage, please see the next FAQs.