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The FDIC told Voyager Digital to take down "false and misleading" claims that its users' deposit accounts are protected by the FDIC.
In a letter sent to Voyager Digital on Thursday by Seth Rosebrockfrom and Jason Gonzalez, assistant general counsel at the Federal Reserve and the Federal Deposit Insurance Corporation (FDIC), they said that the representations "likely misled and were relied on" by customers who put money with Voyager but no longer have access to it:
"These claims are false and misleading, and based on what we know so far, it seems likely that customers who put their money with Voyager and can't get their money right away were led astray by these claims and relied on them."
The Fed and FDIC say that Voyager "made different claims online, such as on its website, mobile app, and social media accounts," which made it seem like it was:
"(1) Voyager is FDIC-insured; (2) customers who invested with the Voyager cryptocurrency platform would get FDIC insurance coverage for all funds given to, held by, on, or with Voyager; and (3) the FDIC would insure customers against the failure of Voyager itself."
The letter also asked Voyager to confirm in writing that it was following the regulator's requests within two business days and to give a full list of all statements about FDIC insurance within 10 days.
It also said that even if Voyager did what the stop-and-desist letter asked, the regulator could still take more action if it thought it was necessary.
On its website, Voyager says it is working with the FDIC to update and clarify the language about FDIC insurance in early 2021 and early 2022.
At the moment, the rules about FDIC insurance say that US dollars in the Voyager cash account are held at Metropolitan Commercial Bank (MCB) and are FDIC insured:
"FDIC insurance doesn't cover Voyager in case it goes bankrupt, but just to be clear, Voyager doesn't hold customer cash; that cash is held by MCB."
Cointelegraph asked Voyager for a comment, but had not heard back right away by the time this article was written.
Voyager Digital only filed for bankruptcy on July 6, citing debts of up to $10 billion to about 100,000 creditors. This was in the midst of market turmoil, which was caused by the collapse of the Terra ecosystem and got worse when Singaporean hedge fund Three Arrows Capital (3AC) stopped paying on a $670 million loan on July 5.
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