US Regulators Instruct Voyager Digital To Stop Duping Investor With Fraudulent Claims

The Federal Reserve and the Federal Deposit Insurance Corp issued a joint letter to Voyager Digital Ltd VYGVQ, urging it to refrain from falsely claiming customers' fund protection by the government.
The U.S. banking regulators suspected the crypto firm guilty of deceiving customers by dubious claims, which recently declared bankruptcy.
The regulators highlighted Voyager's false claims indicating itself being FDIC-insured, claiming that the FDIC would insure customers against the failure of Voyager itself.
Related: 'My Family's Future Is Ruined': Dozens Of Voyager Digital Customers Send Letters To Bankruptcy Judge
The regulators clarified that Voyager had a deposit account at Metropolitan Commercial Bank, and customers investing via the company's platform had no FDIC insurance.
The regulators ordered Voyager to remove every misleading statement within two business days of receiving the letter.
Voyager was one of several crypto firms to struggle in the wake of broad crypto market turmoil.
In its bankruptcy filing, Voyager reported owning over $110 million of cash and owned crypto assets on hand. It has about $1.3 billion of digital assets on its platform.
The bankruptcy wreaked havoc on the investors breeding mistrust on similar platforms.
Disclosure: Benzinga CEO Jason Raznick Is a member of the unsecured creditor committee in the Voyager Digital bankruptcy case.
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