The U.S. Federal Reserve and Federal Deposit Insurance Corporation (FDIC) recently ordered crypto lender Voyager Digital to stop spreading misinformation about it being insured by the government among its customers. The regulatory bodies clearly confirmed that there was no government accountability involved if crypto lender Voyager’s customer funds were at stake.
The statement released by these authorities on Thursday mentioned that:
“Voyager has made various representations online, including its website, mobile app, and social media accounts, stating or suggesting that: (1) Voyager itself is FDIC-insured; (2) customers who invested with the Voyager cryptocurrency platform would receive FDIC insurance coverage for all funds provided to, held by, on, or with Voyager; and (3) the FDIC would insure customers against the failure of Voyager itself. These representations are false and misleading and, based on the information we have to date, it appears that the representations likely misled and were relied upon by customers who placed their funds with Voyager and do not have immediate access to their funds.”
A joint press release by the Fed authorities noted that:
“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 fund.”
Crypto lender Voyager had earlier filed for bankruptcy alongside Celsius at the beginning of this month. Thereafter, such a move by the company was considered to be sheerly detrimental to it. The letter further added that:
“If you believe that any statement you have made related to FDIC deposit insurance is true and accurate, please provide: (1) such written confirmation within two (2) business days from the receipt of this letter, and (2) a full listing of all such statements regarding deposit insurance on any medium or platform, together with information and documentation supporting the accuracy of all such statements, not later than ten (10) days from the date of this correspondence.”
The official letter demands the crypto lender Voyager Digital to provide necessary documents to prove that its stance on government insurance is correct. However, if it fails to do so, serious actions might be taken against it by the Fed and FDIC.