Government Physiques Blast Voyager’s ‘False and Misleading Statements’ On Deposit Insurance

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In another manifestation of dark clouds gathering over troubled crypto platform Voyager Digital, the united states Federal Deposit Insurance Corporation (FDIC) and also the board from the Fed (Given), America’s central bank, have issued a joint letter that they demand that the organization cease and desist from making the things they call “false and misleading statements regarding its FDIC deposit insurance status” and do something to fix such prior statements.

The 2 institutions stated inside a statement that Voyager and certain officials and employees of the organization make various statements online that they claimed or recommended the clients are FDIC-insured, its customers would have the FDIC insurance policy for those funds presented to and held by Voyager, and that the FDIC would insure them against Voyager’s failure.

The 2 entities stated that,

“These representations are false and misleading. In line with the information collected up to now, it seems these representations likely fooled and were relied upon by customers who placed their with Voyager and don’t have access immediately for their funds.” 

Some, however, recommended this action might be not enough, far too late. “Hindsight isn’t investor protection,” contended Maya Zehavi, founder and Chief executive officer at Stealthy Startup Company and Founding Board Person in the Israeli Blockchain Industry Forum, who requested:

“Isn’t the entire concept of regulators to indicate “misleading” marketing fluff to investors before companies go below?”

The most recent development comes soon after Voyager Digital ignored some pot offer by crypto exchange FTX and it is parent company Alameda, calling it a “low-ball bid” that may disrupt their personal bankruptcy process.

“The AlamedaFTX proposal is simply a liquidation of cryptocurrency on the basis that advantages AlamedaFTX. It’s a minimal-ball bid outfitted as a white-colored dark night save,” Voyager’s lawyers stated as a result of the bid inside a lately posted court filing.

Earlier this year, Voyager Digital filed voluntary petitions for relief under Chapter 11 from the U . s . States Personal bankruptcy Code because it seeks to apply its reorganization plan and “maximize value for those stakeholders.”


Find out more: 
Voyager Digital Files for Chapter 11, Seeks to ‘Maximize Value for those Stakeholders’
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