US Regulators Instruct Voyager Digital To Stop Duping Investor With Fraudulent Claims

  • The Federal Reserve and the Federal Deposit Insurance Corp issued a joint letter to Voyager Digital Ltd VYGVQ, urging it to refrain from falsely claiming customers' fund protection by the government.
  • The U.S. banking regulators suspected the crypto firm guilty of deceiving customers by dubious claims, which recently declared bankruptcy.
  • The regulators highlighted Voyager's false claims indicating itself being FDIC-insured, claiming that the FDIC would insure customers against the failure of Voyager itself.
  • Related: 'My Family's Future Is Ruined': Dozens Of Voyager Digital Customers Send Letters To Bankruptcy Judge
  • The regulators clarified that Voyager had a deposit account at Metropolitan Commercial Bank, and customers investing via the company's platform had no FDIC insurance.
  • The regulators ordered Voyager to remove every misleading statement within two business days of receiving the letter. 
  • Voyager was one of several crypto firms to struggle in the wake of broad crypto market turmoil. 
  • In its bankruptcy filing, Voyager reported owning over $110 million of cash and owned crypto assets on hand. It has about $1.3 billion of digital assets on its platform.
  • The bankruptcy wreaked havoc on the investors breeding mistrust on similar platforms.
  • Disclosure: Benzinga CEO Jason Raznick Is a member of the unsecured creditor committee in the Voyager Digital bankruptcy case. 
  • Photo: mundissima via Shutterstock
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