Voyager Digital has reportedly come under scrutiny by the Federal To pay Insurance society (FDIC) the United States. This after claiming that their funds are insured by the FDIC misleading alleged users.
FDIC Voyager survey.
Voyager Digital reportedly announced that through a partnership with a partner bank, Metropolitan Company bankall company depositors are covered by insurance FDIC. In short, the company assumed that user deposits were insured by the FDIC.
The FDIC It is a consumer protection agency responsible for insuring users’ deposits, supervising the security of financial institutions, buying up banks and protecting investors in the event of bank failure.
A spokesperson for FDIC I confirmed to Bloomberg that the Metropolitan Company bank insurance, not Voyager. Therefore, deposits are not protected against Voyager outages, and you purchase the outage and share of the product value.
In other words, a previous MCB statement indicates that Voyager has omnibus charging only in US dollars and not in crypto. The bank added that the insurance applies to the failure of MCB, not Voyager.
last week, Voyager filed for bankruptcy after one of their principal debtors, Three arrows The capital, which stood at $650 million, became insolvent, leaving its users’ funds at risk.
See more: SEC tries to limit expert techniques in lawsuit with Ripple.
Voyager misrepresents FDIC insurance
In a blog post dated December 2019, Voyager explains that insurance FDIC Covers both Voyager and the failure of its banking partner.
“In the rare event that your USD funds are compromised due to default by the company or our banking partner, you are guaranteed a full refund (only $250,000)“.
Yesterday, however, this wording was changed, and insurance coverage FDIC Unlike Voyager failures has been removed.
In its place, we now find the following: “In the rare event that your USD funds are compromised, you are guaranteed a full refund (only $250,000)for you to liquidate them so that you go to Voyager are protected. »
To discover: The US Treasury Department is preparing a table for the international regulation of crypto-currencies.
The founder and CEO of FTXSat Bankman Frieddescribed the current state of the crypto market, in an interview with Forbes. In addition, those in a hurry are support for Attachedthe transmitter of the largest stablecoin USDC of the crypto market,
FTX and bailouts
For abseiling, FTX had recently bailed out BlockFianother crypto liquidity crisis bag exchange. Indeed, he helped the company strengthen his son and returned his strength with a $250 million line of credit.
On the other hand, the exchange had also helped traveldigital, a crypto exchange. I received $500 million in funding to the company last week through the founder’s quantitative trading firm Almeda.
Furthermore, it is not certain that FTX This will be able to recoup the investments and if the help to the business bears fruit for a long time. Slope, SBF I stated that they are contractors “ready to make a bad deal here if it has to be done somehow stabilizing things”.
To discover: Uzbekistan has developed regulations for the mining activity of crypto-currencies.
“Secretly insolvent” stock exchanges.
However, he let me understand that many exchanges will not come out of the current bearish situation. I added that apart from the main ones there are names of exchanges that operate outside the regulations and do not follow the rules KYC. Additionally, he clarified that many companies providing crypto-related services are “secretly unsolvable”.
“Some companies are fundamentally too far ahead. It is impractical to bail them out for reasons such as a large hole in the balance sheet, regulatory issues, or because there is not much business left to save,” the CEO said. FTX.
otherwise, SBF also supported Attached stating that the company can be trusted. In return, in light of the fact that many stablecoin issuers are getting some heat from the community cryptolack of transparency Attached sparked criticism.
“I thought the really bearish reviews on Attached are faults… I don’t think there’s any evidence to back them up,” I added. Bankman Fried.
Related Reading: Binance refuses to bail out bad crypto projects amid market downturn.