Voyager Digital’s marketing of deposit accounts comes under FDIC scrutiny (OTCMKTS:VYGVF)

The Federal Deposit Insurance coverage Company (“FDIC”) is investigating Voyager Digital’s (OTCQX:VYGVF) advertising on the protection of its buyer deposit accounts for crypto purchases, the Wall Road Journal reported Thursday, citing an individual with data on the matter.

The FDIC’s inquiry comes as account holders of Voyager Digital (OTCQX:VYGVF), a crypto dealer and lender that went bankrupt on July 6 amid a broad crypto market downturn, discovered earlier within the week ended July 8 that they in all probability will not have the ability to recoup 100% of their crypto.

Whereas Voyager (OTCQX:VYGVF) suspended withdrawals on $350M in buyer deposits on account of liquidity points, these funds are anticipated to be totally paid again to prospects, however crypto property held on the firm is a unique story, folks acquainted with the matter advised the WSJ.

However, Voyager (OTCQX:VYGVF) had promised that buyer deposit accounts are protected by the FDIC for as much as $250K. “Your USD is held by our banking companion, Metropolitan Industrial Financial institution, which is FDIC insured, so the money you maintain with Voyager is protected,” in response to Voyager’s web site.

The issue is the client accounts are solely eligible to be insured within the occasion of the banks’ failure, Metropolitan Industrial Financial institution mentioned, as reported by the WSJ. So, account holders will not be protected on account of Voyager’s chapter.

In direction of the top of June, Voyager Digital issued a default discover to bankrupt crypto hedge fund Three Arrows Capital.