Fed asks Voyager to remove 'fake' FDIC-insured claim filings

Fed and FDIC allege Voyager "made various claims online" that its funds were FDIC insured.

Crypt lender Voyager Digital has been instructed to remove "false and misleading" claims that its users' deposit accounts are FDIC insured.

In a joint letter written on July 28 by Seth Rosebrockfrom and Jason Gonzalez, assistant general counsel for the Federal Reserve and the Federal Deposit Insurance Corporation (FDIC) to Voyager Digital, the authors said that the statements "likely induced in error and were invoked". by customers who have placed funds with Voyager and no longer have access to it.

“These representations are false and misleading and, based on the information available to us to date, it appears that the statements were likely misleading and relied upon by clients who placed their funds with Voyager and do not have immediate access to their funds."

The Fed and FDIC allege that Voyager "made various representations online, including its website, mobile app, and social media accounts", suggesting that it was:

"(1) Voyager itself is FDIC insured; (2) clients who invested with the Voyager cryptocurrency platform would receive FDIC insurance coverage for all funds provided to, held by, on or with Voyager; and (3) the FDIC would insure customers against the failure of Voyager itself."

The letter further required that Voyager provide written confirmation of its compliance with the regulator's requests within two business days and provide a complete list of all statements regarding any reference to FDIC insurance within 10 days.

He also cautioned that even if Voyager met the requirements set out in the cease and desist letter, that would not preclude the regulator from taking further action if deemed appropriate.

Voyager's website currently states that it worked with the FDIC to update and clarify language surrounding FDIC insurance on its website in early 2021 and early 2022.

Currently, the language surrounding FDIC insurance states that the Voyager USD cash account is held at Metropolitan Commercial Bank (MCB) and is FDIC insured.

“FDIC insurance does not protect against Voyager failure, but to be clear: You...