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The Federal Deposit Insurance coverage Company (FDIC) is probing crypto lender Voyager Digital over claims that it’s FDIC-insured. The crypto agency beforehand defined that by way of its strategic relationships with Metropolitan Business Financial institution, “all clients’ USD held with Voyager is FDIC insured.”
Voyager Probed by FDIC
The Federal Deposit Insurance coverage Company (FDIC) is trying into Voyager Digital Ltd. (TSE: VOYG) and its advertising and marketing of deposit accounts for cryptocurrency purchases, Reuters reported Thursday, citing affirmation by an FDIC official.
The FDIC is an impartial company created by Congress to keep up stability and public confidence within the nation’s monetary system. It regulates and insures the deposits of a lot of group banks and different monetary establishments. “The usual insurance coverage quantity is $250,000 per depositor, per insured financial institution, for every account possession class,” the regulator’s web site particulars.
Whereas crypto lender Voyager is just not an FDIC-insured financial institution, it claimed to be FDIC-insured by way of a banking accomplice. The Voyager crew wrote in a weblog publish again in December 2019:
By way of our strategic relationships with our banking accomplice, Metropolitan Business Financial institution, all clients’ USD held with Voyager is FDIC insured.
The official Twitter account of the crypto lender additionally tweeted many occasions, bragging in regards to the firm’s FDIC insurance coverage. One of many tweets reads: “Have you ever heard? USD held with Voyager is FDIC insured as much as $250K. Our clients’ safety is our high precedence. Begin rising your crypto portfolio in the present day.”
On a number of events, the crypto lender assured Twitter customers who doubted its FDIC insurance coverage that clients’ USD held with the corporate is secure and FDIC-insured.
When Voyager suspended buying and selling, deposits, and withdrawals final week, Metropolitan Business Financial institution, a New York-chartered financial institution and a member of the FDIC, issued a press release concerning FDIC protection out there to Voyager clients.
The financial institution defined that it “maintains an omnibus account” in U.S. {dollars} for the good thing about Voyager clients. Whereas noting that Voyager buyer funds held by Metropolitan Business Financial institution are insured by the FDIC as much as $250,000, the financial institution careworn:
FDIC insurance coverage protection is on the market solely to guard towards the failure of Metropolitan Business Financial institution. FDIC insurance coverage doesn’t shield towards the failure of Voyager.
On Wednesday, Voyager mentioned that it has filed for Chapter 11 chapter. The crypto lender tweeted Sunday: “We at present have roughly $1.3 billion of crypto belongings on our platform, plus claims towards Three Arrows Capital of greater than $650 million. We even have over $350 million of money at Metropolitan Business Financial institution.”
What do you concentrate on the FDIC probing Voyager over claims that it’s FDIC-insured? Tell us within the feedback part under.
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