In one other signal of darkish clouds gathering over troubled crypto platform Voyager Digital, the US Federal Deposit Insurance coverage Company (FDIC) and the board of the Federal Reserve (Fed), America’s central financial institution, have issued a joint letter through which they demand that the corporate stop and desist from making what they describe as “false and deceptive statements relating to its FDIC deposit insurance coverage standing” and take motion to right such prior statements.
The 2 establishments mentioned in an announcement that Voyager and sure officers and workers of the corporate have made numerous statements on-line through which they claimed or steered that the enterprise is FDIC-insured, its clients would get hold of the FDIC insurance coverage protection for all funds offered to and held by Voyager, and in addition that the FDIC would insure them towards Voyager’s failure.
The 2 entities mentioned that,
“These representations are false and deceptive. Based mostly on the knowledge gathered so far, it seems that these representations doubtless misled and have been relied upon by clients who positioned their funds with Voyager and don’t have fast entry to their funds.”
Some, nonetheless, steered that this motion could also be too little, too late. “Hindsight isn’t investor safety,” argued Maya Zehavi, founder and CEO at Stealthy New Enterprise and Founding Board Member of the Israeli Blockchain Trade Discussion board, who requested:
“Isn’t the entire thought of regulators to level out “deceptive” advertising fluff to buyers earlier than firms go underneath?”
The newest improvement comes shortly after Voyager Digital dismissed a joint provide by crypto change FTX and its mum or dad firm Alameda, calling it a “low-ball bid” that might disrupt the corporate’s chapter course of.
“The AlamedaFTX proposal is nothing greater than a liquidation of cryptocurrency on a foundation that benefits AlamedaFTX. It’s a low-ball bid dressed up as a white knight rescue,” Voyager’s legal professionals mentioned in response to the bid in a not too long ago submitted courtroom submitting.
Earlier this month, Voyager Digital filed voluntary petitions for reduction underneath Chapter 11 of the US Chapter Code because it seeks to implement its reorganization plan and “maximize worth for all stakeholders.”