The Federal Reserve and the Federal Deposit Insurance Corp have sent a letter to crypto-broker Voyager Digital, asking it to remove false and misleading statements regarding FDIC insurance and coverage.
The regulators sent Voyager a letter on July 28, saying that the broker had “made false and misleading statements, directly or by implication, concerning Voyager’s deposit insurance status.”
Specifically, the letter states that Voyager had made false or misleading representations on its website, mobile app, and social media accounts, saying that it was FDIC-insured, that customers would receive FDIC insurance coverage, and that the FDIC would insure customers against the failure of Voyager itself.
The Federal Reserve and FDIC ask that the company remove all related statements and that it provides written confirmation showing compliance with the order. Voyager has not released a statement on the development yet.
Voyager in the midst of turmoil
Voyager is one of the many crypto companies that have suffered from the bear market, with it filing for bankruptcy earlier this month. Users are suffering because of the bankruptcy process and may not get all their holdings back. Meanwhile, the Voyager Token has fallen to an all-time low.
The firm has also rejected an offer by FTX and Alameda Research, which was below a fair valuation, according to the broker. FTX has also submitted a proposal to allow Voyager users access to liquidity.
Bankruptcy filings left, right, and center
Among the many companies that have filed for bankruptcy are Celsius Network and Three Arrows Capital. Both of these were once giants of the crypto space, and their fall has highlighted the precarious nature of the market during a crypto winter.
While there have been many discussions about the potential impact of crypto on the wider economy as it grows in stature, the International Monetary Fund recently said that it does not see crypto as a threat to financial stability. This is in contrast to what others have said, even former head of the IMF Christine Lagarde.
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