The Federal Deposit Insurance Corporation (FDIC) is investigating crypto lender Voyager Digital to confirm that it is FDIC-insured. The crypto firm previously reported that through its strategic relationship with Metropolitan Commercial Bank, “all clients placed with Voyager are USD FDIC insured.”
Voyager investigation by FDIC
Federal Deposit Insurance Corporation (FDIC) Voyager Digital Ltd. (TSE: VOYG) and deposit accounts for cryptocurrency purchases, Reuters reported on Thursday, citing confirmation by an FDIC official.
The FDIC is an independent agency created by Congress to maintain stability and public confidence in the nation’s financial system. It regulates and insures the deposits of many community banks and other financial institutions. The regulator’s website details, “The standard sum insured is $250,000 per depositor, per insured bank, for each account ownership category.”
While crypto lender Voyager is not an FDIC-insured bank, it claims to be FDIC-insured through a banking partner. The Voyager team wrote in a blog post in December 2019:
Through our strategic relationship with our banking partner, Metropolitan Commercial Bank, all customers placed with Voyager are USD FDIC insured.
The crypto lender’s official Twitter account also tweeted several times, bragging about the company’s FDIC insurance. One tweet read: “Did you hear? USD held with Voyager is FDIC insured up to $250K. The safety of our customers is our top priority. Start growing your crypto portfolio today.”
On several occasions, the crypto lender reassured Twitter users who doubted its FDIC insurance that the company has secured and FDIC-insured clients’ USD.
When Voyager suspended trading, deposits and withdrawals last week, Metropolitan Commercial Bank, a New York-chartered bank and a member of the FDIC, issued a statement regarding the FDIC coverage available to Voyager customers.
The bank explained that it “maintains an omnibus account” denominated in US dollars for the benefit of Voyager customers. Noting that Voyager customer funds held by Metropolitan Commercial Bank are insured by the FDIC for up to $250,000, the bank emphasized:
FDIC insurance coverage is only available to protect against Metropolitan Commercial Bank failure. FDIC insurance does not protect against Voyager failure.
On Wednesday Voyager said it has filed for Chapter 11 bankruptcy. The crypto lender tweeted on Sunday: “We currently have approximately $1.3 billion in crypto assets on our platform, as well as claims against Three Arrows Capital of over $650 million. We also have $350 million in Metropolitan Commercial Bank More cash.”
What do you think about the FDIC’s claim of the Voyager investigation being FDIC-insured? Let us know in the comments section below.
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