US Authorities Demanded That Voyager Remove References To The Protection Of FDIC Deposits

The Fed and FDIC sent a letter to Voyager Digital demanding they provide a complete list of all statements regarding state insurance of crypto broker deposits within 10 days.

Seth Rosebrockfrom and Jason Gonzalez, assistant legal counsels for the two agencies, also urged management to submit a written confirmation of compliance with the regulator’s requirements within two business days.

They reserved the right to take additional steps if they saw fit.

“These statements [about deposit protection] are false and misleading. Based on the information we have to date, they were relied upon by clients who placed their funds on Voyager and lost direct access to them,” the letter reads.

The crypto broker posted on the website, in the mobile application, and on social networks the following words:

• Voyager is part of the FDIC deposit insurance system;
• Clients who have invested in the Voyager cryptocurrency platform will receive federal corporation insurance coverage for all funds provided to the crypto broker;
• The FDIC will insure customers against the bankruptcy of Voyager.

The Voyager website says that client fiat funds are held with the Metropolitan Commercial Bank, which is part of the FDIC system. Funds up to $250,000 are insured.

The Metropolitan Commercial Bank website says the bank maintains an ” omnibus account dedicated to Voyager customers.” A federal corporation insures its assets, but coverage is available “solely for bankruptcy protection” of the credit institution.