Marketing materials from Crypto Lender Voyager under FDIC scanner: Report
Marketing materials from Crypto Lender Voyager under FDIC scanner: Report
- customers find that their voyager deposits are not directly insured by the FDIC
- The crypto loan said that customers could access funds, "after a voting and fraud prevention process has been completed"
Voyager, the cryptocurrency loan who has registered bankrupt this week, stands in the spotlight for the way he has marketed his deposit accounts to users.
The crypto loan had publicly said that dollar deposits are insured by the Federal Deposit Insurance Corporation due to a partnership with the Metropolitan Commercial Bank.
The Wallstreet Journal reported on Thursday Rel = "NOFOLLOW NOOPENER" TARGET = "_ blank" https://web.archive.org/20218190959/https://www.investvoyager.com/blog/voyager-is-now-fdic-insured/ "> On the website of voyager is said, Customers would receive a complete reimbursement "in the rare case that their USD funds are at risk due to the company's failure or our bank partner".
But the same statement has now been to remove references to the bank partner or now say: "In the rare case that your USD funds are compromised, a complete refund is guaranteed (up to $ 250,000). “
It is noteworthy that the Voyager rule only applies to customers' dollar deposits-not for crypto systems. The customers of the lender have frustration not being able to access their funds, and are particularly concerned after they are particularly concerned have uncovered the competitive crypto hedge fund Three Arrows Capital.Voyager belongs to some companies that have been hit on the market by falling cryptocurrency prices and a liquidity crisis. After freezing withdrawals and trading on its platform, the company registered bankruptcy and said that customers would receive their funds after the restructuring. It said that it holds more than $ 350 million in cash at the Metropolitan Commercial Bank.
According to The Journal, some customers have just found that their deposits are not as insured as they originally thought. It seems that the Voyager guarantees a security net - although there is actually none - by secretly packaging how their deposits are insured.
The individual customer accounts of the company are possible for insurance, but only in the event of a failure by the Metropolitan Commercial Bank. The New York Bank It is said that the FDIC insurance would only be available if the bank fails and not in the case of the failure The voyager. It also added that it maintains an account for Voyager customers who have only US dollars and no crypto systems.
a user conditions that can often be easily overlooked by users, on the website of Voyager shows that the FDIC protection only comes when the partner bank fails.
This confusion regarding the protection of funds that were invested in Voyager via the Metropolitan Commercial Bank has reportedly attracted the attention of the FDIC, and the agency is now examining the lender's marketing material.
Less than two months ago, the FDIC A Rule The prohibition of any natural or legal person, the deposit insurance of the agency incorrectly to use, since this could undermine trust in legally insured banks. The Office for Financial Consumer Protection addressed The output on the same day and emphasized the risks that are exposed to consumers of emerging financial investments such as cryptocurrencies.
Daniel Besikof, a partner of the Loeb & Loeb law firm in New York, said that Voyager's bankruptcy application was a negative development for his account holders, some of whom kept in the millions in the millions.
"Voyager digitally treats these account holders essentially as an unsecured believer and suggests to satisfy their demands with a package of coins, shares of the reorganized Voyager and other assets," he added. "The value of this package is unknown."
fdic and voyager did not immediately answer the request from block works for a comment.
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The article Crypto Lender Voyager’s Marketing Materials Under FDIC Scanner: Report is not a financial advice.
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