Following Voyager Digital’s filing for bankruptcy protection in the first week of July, the Federal Deposit Insurance Corporation (FDIC) and the Federal Reserve Board today issued a joint letter to the company demanding a cease and desist against Voyager’s claims with the FDIC. The FDIC letter explains that Voyager’s FDIC claims are false and misleading, and the entity prohibits anyone from “representing or implying that an uninsured deposit is insured.”
FDIC insists Voyager Digital issued misleading and false federal filing statements
On July 28, 2022, the Federal Reserve Board and the FDIC published a letter to the publicly traded company Voyager Digital Ltd. (TSE: VOYG). The letter claims the bankruptcy Voyager misled investors with FDIC deposit insurance claims and the company is accused of violating federal deposit insurance law.
“The FDIC and the Board of Governors of the Federal Reserve System have reason to believe that Voyager Digital, LLC and its related entities, by and through their officers, directors and employees, have made false and misleading statements , directly or by implication. , regarding the deposit insurance status of Voyager, in violation of 12 USC § 1828(a)(4)”, the letter sent to Voyager details.
The FDIC details that Voyager has made false and misleading statements on the website, mobile app and social media suggesting that “Voyager itself is FDIC insured”, “customers who have invested with the platform Voyager cryptocurrency companies would receive FDIC insurance coverage” and the “FDIC would insure customers against the failure of Voyager itself. The FDIC letter to Voyager points out that these claims are false. The letter states:
These representations are false and misleading and, based on the information available to us to date, it appears that the statements were likely misleading and relied upon by customers who placed their funds with Voyager and did not immediate access to their funds.
Voyager is now responsible for remedying the problem by removing any misrepresentation that suggests in any form that Voyager is FDIC insured. Voyager has two business days to comply with the government’s request. If Voyager believes that the FDIC claims are inaccurate, the company may attempt to prove it through the information and documentation provided.
The FDIC wants a “prompt response” or it will have to take “further action, as appropriate, with respect to the foregoing or any other violation of law or regulation, or unsafe or unsound banking practice.”
What do you think of the FDIC letter to Voyager Digital that claims the company made false and misleading statements that Voyager was FDIC insured? Let us know what you think about this topic in the comments section below..
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