Voyager Digital has been ordered by the Federal Reserve and the Federal Deposit Insurance Corp to remove false and misleading statements regarding FDIC insurance and coverage. The regulators stated in a letter, dated July 28, that Voyager Digital had made false and misleading statements, directly or by implication about its deposit insurance status.
Voyager Digital is alleged to have false or misleading representations on its portal, mobile app, and social media accounts. It said the company was FDIC-insured and customers would receive FDIC insurance coverage. The broker also stated that FDIC would insure customers against the failure of Voyager itself.
As such, the regulators asked the company to remove all related statements and provide written confirmation showing compliance with the order. Voyager Digital is one of the many companies which succumbed to the crypto crash. It filed for bankruptcy earlier this month. The company’s users are suffering from the bankruptcy process and may not get their money back. It has debts up to $10 billion to about 100,000 creditors.
Voyager Digital also rejected an offer by FTX and Alameda Research saying that it was below a fair valuation.