Voyager Digital has been targeted by the FDIC

Voyager Digital has been targeted by the FDIC

Voyager Digital hit by FDIC

The Federal Deposit Insurance Corporation (FDIC) is looking into Voyager Digital. According to the agency, the cryptocurrency broker deceived users by claiming that their assets are protected by the department's program, Bloomberg reports.

On July 5, Voyager Digital filed a bankruptcy petition with a New York court. The company's estimated liabilities range from $1 billion to $10 billion with about 100,000 customers.

Subsidiaries Voyager Digital Holdings Inc and Voyager Digital LLC filed a similar petition under Chapter 11 bankruptcy. The company expects the financial restructuring process to “maximize value for all stakeholders.”

Voyager has approximately $1.3 billion on the platform, over $350 million in a Metropolitan Commercial Bank account, and over $650 million in claims against Three Arrows Capital. In addition, the company “has ~$110 million in cash and its own cryptocurrency holdings.”

The broker has claimed that its clients' assets are covered by the FDIC's deposit insurance program through a partnership with the Metropolitan Commercial Bank.

“This means that in the rare event that our dollar reserves are compromised, you are guaranteed a full refund (up to $250,000), so cash in Voyager accounts is protected,” the company said in a Dec. 18, 2019 publication. ;

However, this is a modified statement. According to the Wayback Machine, the original wording was: 

“[…]on the rare occasion that our dollar reserves are compromised due to errors of the company or our banking partner […]”.

Voyager Digital hit by FDIC< /p>Original Voyager statement.

Voyager Digital hit by FDIC

Edited Voyager statement.

The Metropolitan Commercial Bank website says the bank maintains an “omnibus account dedicated to Voyager customers.” The assets in this account are insured by the FDIC, but coverage is available “solely for bankruptcy protection” of the lending institution:

“FDIC insurance does not protect against the collapse of Voyager, actions or inaction of the company or its employees, as well as from losses associated with a decrease in the quotes of cryptocurrencies or other assets.”

In a conversation with Bloomberg, an FDIC representative emphasized that Metropolitan Commercial Bank is insured by the agency, but Voyager Digital is not. According to him, the department's program does not protect the broker's clients from default, bankruptcy or blocking of funds. 

Alameda Research previously provided a loan of 200 million USDC to the cryptocurrency broker and opened a revolving line of credit for 15,000 BTC.


Recall that the head of Binance, Changpeng Zhao, criticized the deal and said that he “would never have agreed to such an agreement.”

Read ForkLog bitcoin news in our Telegram – cryptocurrency news, rates and analytics.