July 28, 2022
FDIC and Federal Reserve Board subject letter demanding Voyager Digital stop and desist from making false or deceptive representations of deposit insurance coverage standing
- Board of Governors of the Federal Reserve System
- Federal Deposit Insurance coverage Company
For launch at 5:15 p.m. EDT
The Federal Deposit Insurance coverage Company (FDIC) and the Federal Reserve Board at the moment issued a joint letter demanding that the crypto brokerage agency Voyager Digital stop and desist from making false and deceptive statements relating to its FDIC deposit insurance coverage standing and take speedy motion to appropriate any such prior statements.
Based on the businesses, Voyager and sure officers and workers made numerous statements on-line, together with on its web site, cell 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 supplied to, and held by, Voyager, regardless of the insured depository establishment account; and
- The FDIC would insure clients towards the failure of Voyager itself.
These representations are false and deceptive. Primarily based on the data gathered thus far, it seems that these representations probably misled and had been relied upon by clients who positioned their funds with Voyager and would not 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 by which a deposit legal responsibility, obligation, certificates, or share is insured beneath that Act. The FDIC is allowed to implement this prohibition towards any individual.
Voyager maintains a deposit account for the advantage of its clients at Metropolitan Industrial Financial institution, which is supervised by the Board. Voyager isn’t itself insured by the FDIC, although, and so clients who invested via its cryptocurrency platform wouldn’t obtain insurance coverage protection within the occasion of Voyager’s failure.
The FDIC deposit insurance coverage program protects clients within the occasion of the failure of an FDIC-insured financial institution. To find out if an establishment is FDIC-insured, you may ask a consultant of the establishment, search for the FDIC signal on the establishment, or use the FDIC’s BankFind instrument. For extra details about FDIC deposit insurance coverage, please see the next FAQs.
July 28, 2022