US Regulators Order Voyager Digital to Stop Misleading Customers

Daniel Attoe
Daniel Attoe

Updated · Jul 29, 2022

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On Thursday, the crypto lending company received firm orders from regulators to rescind its claims.

False and Misleading” Claims

Cryptocurrency brokerage Voyager Digital has received a “cease and desist” notice from regulators. The company has allegedly made incorrect claims that it is insured by the US government. 

The Federal Deposit Insurance Corporation (FDIC) and the Board of Governors of the Federal Reserve System issued the joint letter on Thursday. It called out the lender – which declared bankruptcy this month – for making “false and misleading” claims that the FDIC protected customer funds in case the company failed.

Voyager has struggled to navigate upheaval brought about by the currently distressed crypto industry. Early in July, the New York-based firm announced that it was suspending all trading, deposits, and withdrawals.

Voyager stands accused of misrepresenting itself as an FDIC-insured company. The regulators also allege that it had assured customers that the platform would receive FDIC insurance coverage for all their held funds.

Data gathered by the regulators points only to deposit accounts with the New York Metropolitan Commercial Bank. 

“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,” the letter said.

Both regulators demand that Voyager must “immediately remove any and all statements, representations, or references” of its claims. 

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Daniel Attoe

Daniel Attoe

Daniel is an Economics grad who fell in love with tech. His love for books and reading pushed him into picking up the pen - and keyboard. Also a data analyst, he's taking that leap into data science and machine learning. When not writing or studying, chances are that you'll catch him watching football or face-deep in an epic fantasy novel.

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