The Federal Deposit Insurance Corporation (“FDIC”) is investigating Voyager Digital’s (OTCQX:VYGVF) advertising on the security of its client deposit accounts for crypto buys, the Wall Street Journal reported Thursday, citing a individual with expertise on the subject.
The FDIC’s inquiry will come as account holders of Voyager Electronic (OTCQX:VYGVF), a crypto broker and loan provider that went bankrupt on July 6 amid a wide crypto sector downturn, learned previously in the week ended July 8 that they possibly will not likely be ready to recoup 100% of their crypto.
While Voyager (OTCQX:VYGVF) suspended withdrawals on $350M in customer deposits thanks to liquidity problems, individuals funds are anticipated to be totally compensated back to buyers, but crypto assets held at the organization is a distinctive tale, folks familiar with the issue instructed the WSJ.
Even so, Voyager (OTCQX:VYGVF) had promised that buyer deposit accounts are safeguarded by the FDIC for up to $250K. “Your USD is held by our banking spouse, Metropolitan Industrial Financial institution, which is FDIC insured, so the money you maintain with Voyager is protected,” according to Voyager’s web page.
The trouble is the consumer accounts are only eligible to be insured in the function of the banks’ failure, Metropolitan Commercial Financial institution said, as described by the WSJ. So, account holders is not going to be secured as a consequence of Voyager’s personal bankruptcy.
In the direction of the conclusion of June, Voyager Electronic issued a default observe to bankrupt crypto hedge fund 3 Arrows Money.