The marketing of deposit accounts by Voyager Digital is regulated by the FDIC (OTCMKTS: VYGVF)
Federal Deposit Insurance Corporation (“FDIC”) Investigating Voyager Digital (OTCQX:VYGVF) marketing on the security of its customer deposit accounts for crypto purchases, the the wall street journal reported Thursday, citing a person with knowledge of the question.
The FDIC investigation comes as account holders of Voyager Digital (OTCQX:VYGVF), a crypto broker and lender that filed for bankruptcy on July 6 amid a broad crypto market downturn, have learned earlier in the week ending July 8 that they probably wouldn’t be able to recover 100% of their crypto.
While Voyager (OTCQX:VYGVF) has suspended withdrawals on $350 million in customer deposits due to liquidity concerns, those funds are expected to be fully refunded to customers, but the crypto assets held in the business are another story. , said people familiar with the matter. the WSJ.
Nonetheless, Voyager (OTCQX: VYGVF) promised that customer deposit accounts would be FDIC protected for up to $250,000. “Your USD is held by our banking partner, Metropolitan Commercial Bank, which is FDIC insured, so the money you hold with Voyager is protected,” according to Voyager’s website.
The problem is that accounts receivable can only be insured if banks fail, the Metropolitan Commercial Bank said, as reported by the WSJ. Thus, account holders will not be protected following the bankruptcy of Voyager.
Towards the end of June, Voyager Digital issued a default notice to bankrupt crypto hedge fund Three Arrows Capital.