Fed Board, FDIC Order Voyager Digital to Retract Federal Deposit Insurance Claims

Following Voyager Digital’s utility for chapter safety in the course of the first week of July, Federal Deposit Insurance Corporation (FDIC) and the Federal Reserve Board immediately issued a joint letter to the corporate demanding a stop and desist towards Voyager’s FDIC claims. The FDIC’s letter explains that Voyager’s FDIC claims are false and deceptive, and the entity prohibits anybody from “representing or implying that an uninsured deposit is insured.”

FDIC Insists Voyager Digital Published Misleading and False Federal Deposit Claims

On July 28, 2022, the Federal Reserve Board and FDIC issued a letter to the publicly-listed firm Voyager Digital Ltd. (TSE: VOYG). The letter claims the bankrupt Voyager misled buyers with claims regarding FDIC deposit insurance coverage and the corporate is accused of violating the Federal Deposit Insurance Act.

“The FDIC and the Board of Governors of the Federal Reserve System have motive to imagine that Voyager Digital, LLC, and its related-entities, by and thru their officers, administrators, and workers have made false and deceptive statements, immediately or by implication, regarding Voyager’s deposit insurance coverage standing, in violation of 12 U.S.C. § 1828(a)(4),” the letter despatched to Voyager particulars.

The FDIC particulars that Voyager made false and deceptive statements on the web site, cell utility, and social media that urged “Voyager itself is FDIC-insured,” “clients who invested with the Voyager cryptocurrency platform would obtain FDIC insurance coverage protection,” and the “FDIC would insure clients towards the failure of Voyager itself.” The FDIC letter to Voyager highlights that these claims are false. The letter states:

These representations are false and deceptive and, based mostly on the knowledge we’ve thus far, it seems that the representations probably misled and had been relied upon by clients who positioned their funds with Voyager and wouldn’t have quick entry to their funds.

Voyager is now mandated to treatment the problem by eradicating any false statements suggesting in any type that Voyager is insured by the FDIC. Voyager has two enterprise days to adjust to the federal government’s request. If Voyager thinks the FDIC’s claims are inaccurate, the corporate can try and show it by way of offered info and documentation.

The FDIC needs a “immediate response” or it must take “additional motion, as applicable, with respect to the foregoing or another violations of legislation or regulation, or unsafe or unsound banking apply.”

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