Voyager Ordered by Fed to Stop Misleading Customers About FDIC Protection

Federal Reserve and Federal Deposit Insurance Corporation (FDIC) have contacted Voyager, a crypto brokerage firm. Both the Federal Reserve and the Federal Deposit Insurance Corporation (FDIC) have contacted Voyager to demand that it correct any misleading statements it made in the past about Voyager’s deposit insurance coverage.

Voyager False Claims

The Fed and FDIC issued a joint statement on Thursday naming Voyager as the source of “false, misleading” claims across their social media accounts, mobile apps, and websites.

These claims included that Voyager was FDIC-protected and that Voyager customers would be covered for all funds deposited. FDIC coverage would also be provided to customers in the event of Voyager’s failure.

Customers believed this misleading information when they offered their funds to Voyager. Since then, the funds have been frozen indefinitely.

The Federal Deposit Insurance Act prohibits anyone from implying or representing that an uninsured deposits is insured, or from knowingly misrepresenting that a deposit liability or obligation, certificate or share is insured under that Act,” stated the release.

FDIC protects customer deposits against bank insolvency. It can usually protect up to $250,000. The FDIC is responsible for ensuring that banks across America adhere to consumer protection laws such as the Truth in Lending Act and Fair Debt Collection Practices Act. The FDIC protects customers’ savings, checking and money market deposits accounts at insured banks. However, it doesn’t insure stock, bonds or investment accounts.

What protections can customers expect?

Voyager issued a similar response earlier in the month to public scrutiny, clarifying what protections it offers its customers. Voyager acknowledged that USD deposits of customers were insured and would be returned to their owners, as officials noted in Thursday’s statement.

All deposits of this nature are held at the Metropolitan Commercial Bank (MCB), New York – which is an FDIC-insured institution. Customers are not protected from Voyager’s failure, nor those of its custodians as the website implied. The company was unable to provide guarantees as to how much of crypto deposits customers could be returned. The customer agreement states that the rules and regulations governing customers’ rights to cryptocurrency insolvency are not clear.

Voyager’s plan in progress was to compensate customers with a combination crypto, Voyager tokens and Three Arrows Capital recovery proceeds. Also, shares in a newly founded firm.

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Marla Brooks

Marla Brooks – Financial Analysis My name is Marla Brooks, and I am the mainstream behind the”observednews.com”  for the powerful and most delicate insights into the latest activities in the financial analysis category. I started my journey as an independent financial consultant. I had approximately nine years of experience in this field. I am free soul so; my passion for exploring the world has taken me to the nations across the globe and given me the chance to report for a portion of the best news associations. Currently, I am a full-time editor as experienced in finance and started to use my abilities.

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