Voyager Digital, a struggling cryptocurrency brokerage firm, was reportedly under investigation by the U.S. Federal Deposit Insurance Corporation for claiming that funds were FDIC insured shortly after it filed for bankruptcy.
The Wall Street Journal reported that anonymous sources have revealed that the FDIC is investigating Voyager’s marketing. The company released a statement on its website in December 2019, stating that all USD customers have with Voyager are insured by the FDIC because of their strategic relationship with Metropolitan Commercial Bank. This means that, in the unlikely event of USD funds being compromised, Voyager will reimburse you 100% (up to $250,000), and your cash is protected.
Voyager customers discovered recently that their deposits are not FDIC-insured. A previous statement from Metropolitan Commercial Bank, a New York-chartered banking institution and FDIC member, stated Voyager has an omnibus account that is only for U.S. Dollars and not crypto. FDIC insurance coverage does not cover Voyager. FDIC insurance doesn’t cover Voyager’s failure, any act of Voyager and its employees, nor the loss of value of cryptocurrency or assets.
This latest development follows Voyager’s bankruptcy filings. The brokerage firm had placed a suspension on withdrawals and deposits earlier in July.
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