Voyager customers may not receive the same $250,000 insurance coverage from the FDIC as what Voyager previously advertised.
Voyager Digital recently announced to suspend deposit/withdrawal operations on the platform after failing to recover a payment worth 15,250 Bitcoin (BTC) and 350 million USDC from 3AC. The thought that everything simply stopped there, but everything took a different turn.
As Voyager’s demise looms, investors are taking a closer look at the company’s operations. People started to pay more attention to the $250,000 insurance from the FDIC (Federal Deposit Insurance Corporation) that was heavily promoted by Voyager. In a nutshell, if Voyager fails in investment activities, customers will receive from FDIC’s insurance package up to $250,000.
Earlier, Voyager saw this as a competitive advantage to raise money from investors in it, including cryptocurrencies. However, few would expect that 2 years after these investment offers, many investors who have deposited crypto in this company may not receive the insurance from the FDIC as many do myths.
In a recent statement from the Metropolitan Commercial Bank, FDIC insurance does not protect against the failure of Voyager, any act or omission of the company or its employees, or the loss in value of cryptocurrencies or other assets (Metropolitan Commercial Bank is a New York-based bank and member of the FDIC). This sounds like bad news for crypto investors.
A wave of controversy erupted with accusations of fraud against Voyager because people poured money into the company in part because of FDIC insurance ads. People think it is safe, and put their life savings into it. However, when something goes wrong, he seems to realize that he has been deceived before.
Under pressure from the community, the company has made an official announcement on this issue. However, it seems that the company’s explanations do not satisfy the existing questions of investors. They make no mention of this FDIC coverage.
Instead, it just said it now has about $1.3 billion in crypto assets on its platform, plus over $650 million from Three Arrows Capital and over $350 million in cash at Metropolitan Commercial Bank.
It seems that instead of explaining thoroughly, they are trying to prove that they still have the financial capacity to handle problems for customers. However, Voyager also did not say what they will do next. It is not excluded that the company will receive an offer to buy back in the same way that FTX.US bought BlockFi.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
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