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Crypto Lender Voyager Ordered by US Regulators to Stop Misleading Customers

Legal

www.coindesk.com 28 July 2022 21:59, UTC
  
Reading time: ~2 m

Crypto lender Voyager Digital has been ordered by U.S. banking regulators to stop making incorrect claims that the company was insured by the government.

The Federal Reserve and Federal Deposit Insurance Corporation ordered Voyager to cease any representations that its customers' funds would protected in case of the company's failure, according to a statement published Thursday.

“It appears that these representations likely misled and were relied upon by customers who placed their funds with Voyager and do not have immediate access to their funds,” the agencies said. The Toronto-based crypto lender collapsed earlier this month, filing for bankruptcy protection.

The FDIC previously confirmed it was looking into claims that Voyager's customers' funds were FDIC-insured in the event the lender collapsed. In reality, only Voyager's own omnibus account at its New York bank was covered.


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