Voyager announced its Chapter 11 bankruptcy filing on Wednesday.
An insured bank must provide $250,000 in insurance to each of its customers.
As confirmed by an FDIC official, Reuters reported on Thursday that the Federal Deposit Insurance Corporation (FDIC) is investigating Voyager Digital Ltd. (TSE: VOYG) and its promotion of deposit accounts for cryptocurrency transactions.
Congress established the Federal Deposit Insurance Corporation (FDIC) to safeguard financial stability and public trust in the U.S. economy. Community banks and other financial institutions are regulated and insured by the Federal Deposit Insurance Corporation (FDIC). According to the regulator’s website, an insured bank must provide $250,000 in insurance to each of its customers for any account type.
Companies FDIC Protection Boasted
A banking partner of crypto lender Voyager claimed to be insured by the FDIC even though Voyager is not an FDIC-insured bank. In December 2019, the Voyager crew said in a blog post.
The post read:
“Through our strategic relationships with our banking partner, Metropolitan Commercial Bank, all customers’ USD held with Voyager is FDIC insured.”
On several occasions, the crypto lender’s official Twitter account also boasted about the company’s FDIC protection. Voyager announced its Chapter 11 bankruptcy filing on Wednesday.
The tweet read:
“Have you heard? USD held with Voyager is FDIC insured up to $250K. Our customers’ security is our top priority. Start growing your crypto portfolio today.”
According to several tweets from the crypto lender, consumers’ USD is secure and FDIC-insured while stored with the firm. An official statement from Metropolitan Commercial Bank, a New York-chartered FDIC member serving Voyager clients, was released in response to the company’s suspension of trading, deposits, and withdrawals last week.
According to the bank:
“FDIC insurance coverage is available only to protect against the failure of Metropolitan Commercial Bank. FDIC insurance does not protect against the failure of Voyager.”