- 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
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Visit Benzinga's Crypto Homepage - 1,000,000+ depend on Benzinga Crypto every month