The Federal Deposit Insurance coverage Corporation (“FDIC”) is investigating Voyager Digital’s (OTCQX:VYGVF) marketing on the protection of its shopper deposit accounts for crypto buys, the Wall Street Journal documented Thursday, citing a man or woman with knowledge on the subject.
The FDIC’s inquiry will come as account holders of Voyager Electronic (OTCQX:VYGVF), a crypto broker and financial institution that went bankrupt on July 6 amid a broad crypto market downturn, learned previously in the week ended July 8 that they possibly would not be equipped to recoup 100% of their crypto.
Whilst Voyager (OTCQX:VYGVF) suspended withdrawals on $350M in client deposits because of to liquidity troubles, those people money are anticipated to be completely paid out again to consumers, but crypto assets held at the corporation is a various tale, people familiar with the make a difference advised the WSJ.
Even so, Voyager (OTCQX:VYGVF) experienced promised that buyer deposit accounts are secured by the FDIC for up to $250K. “Your USD is held by our banking associate, Metropolitan Commercial Lender, which is FDIC insured, so the dollars you maintain with Voyager is secured,” in accordance to Voyager’s site.
The trouble is the customer accounts are only qualified to be insured in the party of the banks’ failure, Metropolitan Business Lender said, as noted by the WSJ. So, account holders is not going to be protected as a consequence of Voyager’s individual bankruptcy.
To the end of June, Voyager Digital issued a default notice to bankrupt crypto hedge fund A few Arrows Cash.