Following Voyager Digital’s application for bankruptcy protection during the first week of July, Federal Deposit Insurance Corporation (FDIC) and the Federal Reserve Board today issued a joint letter to the company demanding a cease and desist against Voyager’s FDIC claims. The FDIC’s letter explains that Voyager’s FDIC claims are false and misleading, and the entity prohibits anyone from “representing or implying that an uninsured deposit is insured.”
FDIC Insists Voyager Digital Published Misleading and False Federal Deposit Claims
On July 28, 2022, the Federal Reserve Board and FDIC issued a letter to the publicly-listed company Voyager Digital Ltd. (TSE: VOYG). The letter claims the bankrupt Voyager misled investors with claims concerning FDIC deposit insurance and the company is accused of violating the Federal Deposit Insurance Act.
“The FDIC and the Board of Governors of the Federal Reserve System have reason to believe that Voyager Digital, LLC, and its related-entities, by and through their officers, directors, and employees have made false and misleading statements, directly or by implication, concerning Voyager’s deposit insurance status, in violation of 12 U.S.C. § 1828(a)(4),” the letter sent to Voyager details.
The FDIC details that Voyager made false and misleading statements on the website, mobile application, and social media that suggested “Voyager itself is FDIC-insured,” “customers who invested with the Voyager cryptocurrency platform would receive FDIC insurance coverage,” and the “FDIC would insure customers against the failure of Voyager itself.” The FDIC letter to Voyager highlights that these claims are false. The letter states:
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.
Voyager is now mandated to remedy the issue by removing any false statements suggesting in any form that Voyager is insured by the FDIC. Voyager has two business days to comply with the government’s request. If Voyager thinks the FDIC’s claims are inaccurate, the company can attempt to prove it via provided information and documentation.
The FDIC wants a “prompt response” or it will have to take “further action, as appropriate, with respect to the foregoing or any other violations of law or regulation, or unsafe or unsound banking practice.”
What do you think about the FDIC letter to Voyager Digital that claims the company made false and misleading statements that say Voyager was FDIC insured? Let us know what you think about this subject in the comments section below.
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Author: Jamie Redman