Federal Reserve Board - FDIC and Federal Reserve Board issue letter demanding Voyager Digital cease and desist from making false or misleading representations of deposit insurance status

The Federal Deposit Insurance Corporation (FDIC) and the Federal Reserve Management today issued a joint letter demanding that the crypto brokerage firm Voyager Digital stay and desist from making false and misleading statements regarding its FDIC deposit insurance plot and take immediate action to correct any such prior statements.

According to the activities, Voyager and certain officers and employees made various statements online, including on its website, mobile app, and social deem accounts, stating or suggesting that:

1. Voyager itself is FDIC-insured;


2. Customers who invested with the Voyager cryptocurrency platform would assertion FDIC insurance coverage for all funds provided to, and held by, Voyager, without reference to the insured depository institution account; and


3. The FDIC would insure customers in contradiction of the failure of Voyager itself.

These representations are false and misleading. Based on the information gathered to date, it appears that these representations liable misled and were relied upon by customers who placed their supplies with Voyager and do not have immediate access to their funds.

The Federal Deposit Insurance Act, nonetheless, prohibits any person from representing or implying that an uninsured deposit is insured or from knowingly misrepresenting the extent and manner in which a deposit liability, obligation, certificate, or share is insured under that Act. The FDIC is employed to enforce this prohibition against any person.

Voyager experiences a deposit account for the benefit of its customers at Metropolitan Commercial Bank, which is supervised by the Organization. Voyager is not itself insured by the FDIC, opinion, and so customers who invested through its cryptocurrency platform would not demand insurance coverage in the event of Voyager's failure.

The FDIC deposit insurance program protects customers in the own of the failure of an FDIC-insured bank. To choose if an institution is FDIC-insured, you can ask a representative of the institution, look for the FDIC sign at the institution, or use the FDIC's BankFind tool. For more inquire about FDIC deposit insurance, please see the following FAQs.

Thanks for watching our article Federal Reserve Board - FDIC and Federal Reserve Board issue letter demanding Voyager Digital cease and desist from making false or misleading representations of deposit insurance status. Please share it with kind.

Source: www.federalreserve.gov