crypto lender voyager ordered through us regulators to forestall misleading customers

the federal reserve and federal deposit insurance corp. issued a quit-and-desist assertion to voyager, pronouncing it made false claims that its clients could have government protections.

crypto lender voyager virtual has been ordered by using u.s. banking regulators to prevent making incorrect claims that the organization turned into insured via the government.
the federal reserve and federal deposit insurance organization ordered voyager to give up any representations that its clients’ price range might be included in case of the employer’s failure, consistent with a statement published thursday.
“voyager has made various representations online, consisting of its website, cellular app, and social media accounts, pointing out or suggesting that: (1) voyager itself is fdic-insured; (2) customers who invested with the voyager cryptocurrency platform could receive fdic insurance coverage for all funds supplied to, held by, on, or with voyager; and (3) the fdic would insure customers in opposition to the failure of voyager itself,” the letter stated. “these representations are false and misleading and, based totally on the statistics we must date, it appears that the representations likely misled and have been relied upon via customers who located their budget with voyager and do no longer have immediate get admission to to their budget.”

“it appears that those representations probably misled and had been relied upon by using clients who positioned their finances with voyager and do no longer have instantaneous get right of entry to to their funds,” the corporations stated of their joint press release. the toronto-based totally crypto lender collapsed in advance this month, filing for financial disaster safety.
the regulators “demanded” that voyager “right now dispose of” any statements or references suggesting the employer is fdic-insured and ship a letter to the fed and fdic confirming not most effective the removal of said references, but additionally what steps voyager took to do so.
“if you believe that any assertion you have made related to fdic deposit insurance is true and correct, please offer: (1) such written confirmation within two (2) business days from the receipt of this letter, and (2) a full listing of all such statements concerning deposit coverage on any medium or platform, together with data and documentation supporting the accuracy of all such statements, no longer later than ten (10) days from the date of this correspondence,” the letter said.
the fed and fdic warned that they will still take similarly movement if wanted, with out suggesting what that might appear to be.
the fdic previously showed it turned into searching into claims that voyager’s clients’ finances have been fdic-insured within the event the lender collapsed. in fact, most effective voyager’s own omnibus account at its ny financial institution became blanketed.
the government letter, sent to ceo stephen ehrlich, comes too late to protect the cash customers entrusted to voyager. at this degree, they may be watching the financial disaster courts and any further intervention from different companies, together with ftx.
sam bankman-fried’s trading platform made an early liquidity provide to voyager customers, though attorneys for voyager criticized it as a “low-ball bid dressed up as a white knight rescue” that only blessings ftx.
bankruptcy court decide michael wiles has already been hearing from customers together with lisa dagnoli of massachusetts, who requested the presiding choose in a letter to “please listen the reality about their advertising, their spending, their economic activities, and the quantity of money they have got from human beings throughout which are overwhelmed financially due to the fact we trusted voyager.”