US Regulators Order Voyager to Remove Misleading Messages

Even after declaring bankruptcy, Voyager continues to have problems with governmental institutions.

Voyager, a crypto exchange founded in 2018 by Stephen Ehrlich, has been warned by The Federal Reserve and Federal Deposit Insurance Corporation to stop making false claims or additional measures will be taken

According to the letter issued on July 28th, the institutions have noticed that Voyager claims that all of the investors’ funds will be protected by the government in case the company goes bankrupt.  

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In the joined letter, US regulatory institutions explain why this statement isn’t correct: 

Voyager maintains a deposit account for the benefit of its customers at Metropolitan Commercial Bank, which is supervised by the Board. Voyager is not itself insured by the FDIC, though, and so customers who invested through its cryptocurrency platform would not receive insurance coverage in the event of Voyager’s failure.

The crypto exchange is blamed for giving “false and misleading” representations of its functionality. The institutions also highlight that due to the messages that crypto exchange shared on their website or social media platforms, some investors chose Voyager funds precisely because of these claims

In the further parts of the joined letter, the institution orders Voyager to remove the false claims about the company being FDIC-insured. Moreover, the corporation wants to receive not only the proof of taking this action but also an in-depth report on how Voyager removed these false messages.

The letter has been sent to Voyager CEO Stephen Ehrlich, however, the company has yet to provide its response to declared issues

It is worth noting that at the beginning of July, Voyager declared bankruptcy after having its customer assets withdrawn. 

In other news, Voyager had an opportunity to at least partially save its customer funds, however, denied it. On July 22th, FTX and Alameda proposed a joint offer to buy all Voyager’s digital assets and digital asset loans, excluding Three Arrows Capital (3AC) loans.

Aaron S. - Expert Reviewer

by Aaron S. – Expert Reviewer, BitDegree

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