Crypto lending platform Voyager Digital has recently filed for bankruptcy after difficult conditions in the cryptocurrency market. Before Voyager filed for bankruptcy, the Fed and FDIC accused Voyager of various statements. The FDIC has given Voyager broader warnings.
FDIC Expands Voyager Charges
Filing for bankruptcy, Voyager issued a referral to stop and dismiss claims that its customers are protected by deposit insurance. The FDIC has explained to everyone what not to do.
After demanding that Voyager Digital delete its claims that client funds would receive government protection, the US Federal Deposit Insurance Corporation (FDIC) has issued a broad warning to bankers that it needs to keep its crypto partners in line.
“FDIC insurance can not protect its non-bank clients against the default, insolvency, or bankruptcy of any non-bank entity, including crypto custodians, exchanges, brokers, wallet providers, or other entities that appear to impersonate banks but are not.” used.
The FDIC guidance stated that if a bank’s crypto partner “makes false statements about the nature and scope of deposit insurance,” that regulated lender may pose legal risks.
The FDIC and the Federal Reserve (Fed) sent a letter to Voyager Digital CEO Stephen Ehrlich this week accusing the crypto lender of misleading customers about protecting their assets by implying that they would be covered by deposit insurance in the event of Voyager’s collapse.