The Federal Deposit Insurance Corporation (FDIC) is looking into Voyager Digital for allegedly deceiving users. It’s alleged that Toronto-based Voyager Digital marketed that all depositors in the firm were covered by FDIC insurance through its partnership with Metropolitan Commercial Bank.
The FDIC spokesperson highlighted that only the Metropolitan Commercial Bank is insured and not Voyager. This means the depositors are not protected against the firm’s failure – including bankruptcy and loss in value of products. Voyager filed for bankruptcy last week after Three Arrows Capital (3AC), which owes $650 million, went insolvent.
The Toronto Stock Exchange suspended trading of Voyager’s stock on July 6, at around $0.27 – a 98% decline year-to-date. Voyager said it will voluntarily delist its shares today from the Toronto Stock Exchange. It should be noted that trading has also been halted in US OTC Markets.
Back in December 2019, Voyager in a blog post said FDIC insurance covers both Voyager and its banking partner’s failure. It highlighted that in the rare event, the customer’s USD funds are compromised due to the company or the banking partner’s failure, and customers are guaranteed a full reimbursement of up to $250,000. But this note has been modified – protection of FDIC insurance against Voyager’s failures was removed. It now states that in the event that USD funds are compromised, customers are guaranteed a full reimbursement of up to $250,000. In other words, the cash the customer holds with Voyager is protected.