2 years ago
The U.S. Federal Reserve (FED) and Federal Deposit Insurance Corp (FDIC) person ordered Voyager Digital to desist from making mendacious and misleading claims astir its security presumption to customers.
In a associated letter sent to the crypto steadfast connected July 28, the regulators said misleading accusation by Voyager Digital astir its funds being covered by FDIC security whitethorn person influenced customers into investing successful them.
A Voyager Twitter station from November 12, 2020, showed it made an announcement stating that USD held with Voyager is FDIC insured up to $250,000.
Have you heard? USD held with Voyager is FDIC insured up to $250K. Our customers' information is our apical priority. Start increasing your crypto portfolio today.
— Voyager (@investvoyager) November 12, 2020
The regulators said:
“Based connected the accusation gathered to date, it appears that these representations apt misled and were relied upon by customers who placed their funds with Voyager and bash not person contiguous entree to their funds.”
According to the letter, Voyager has a deposit relationship with Metropolitan Commercial Bank, which is insured, but had nary security licence from the FDIC to connection its customers.
Voyager has been mandated to region each misleading statements from each applicable touchpoints wrong 2 concern days. However, they tin prosecute the regulators for further clarifications if they person immoderate ineligible impervious of FDIC deposit insurance.
Voyager seeking a mode out
The cease and desist bid from the regulators is the latest successful a drawstring of unfortunate events besieging Voyager.
The 3AC collapse caused Voyager to halt lawsuit withdrawals abruptly. A fewer days later, it filed for Chapter 11 bankruptcy. Voyager is presently seeking involution from investors to settee its creditors.
Sam Bankman-Fried’s FTX speech offered to bargain each of Voyager’s assets and refund customers pursuing the trouble. However, Voyager rebuffed the connection and said it was a “low-ball bid dressed up arsenic a achromatic knight rescue.”
Voyager backed disconnected the FTX woody and said it is moving connected a restructuring process to instrumentality maximum worth to its customers and stakeholders.
In a July 11 update, Voyager started a voluntary restructuring process that volition instrumentality funds to customers successful crypto and communal equity. It disclosed that its crypto plus holding magnitude to astir $1.3 billion, positive a $650 million indebtedness owed by collapsed Three Arrows Capital (3AC).
The station US watchdogs bid Voyager Digital to halt making misleading security claims appeared archetypal connected CryptoSlate.
English (US) 