Crypto lender Voyager ordered to stop misleading claims on deposit insurance
Voyager
Modified Date:- Published Date:-Categories: Cryptocurrency
Crypto lender Voyager ordered to stop misleading claims on deposit insurance
- U.S. banking regulators have ordered crypto lender Voyager Digital to stop making false and misleading claims that its customers funds were insured by the government.
- The Federal Reserve and Federal Deposit Insurance Corp (FDIC) outlined their concerns in a letter sent to Voyager on Thursday.
- He said Voyager had falsely claimed itself and its customers' funds to be insured by the FDIC and that in the event of Voyager's collapse, the customers were insured by a government corporation.
- Voyager maintains at least one deposit account with FDIC-insured Metropolitan Commercial Bank in New York, but that coverage does not extend to its customers, regulators said.
- The regulator said in the letter that the representations appeared to be likely to be misleading and were relied upon by customers who held their funds with Voyager and did not have immediate access to their funds.
- Regulators demanded that Voyager remove all material suggesting the above concerns within two days.
Voyager is a cryptocurrency brokerage stage and computerized resource wallet that permits clients to purchase, sell, and store different cryptocurrencies. It likewise offers an element called "Explorer Premium Program" which permits clients to procure interest on their digital money property.
As a crypto lender, Explorer works with getting and loaning exercises inside its foundation. Clients can loan their cryptocurrencies to other people and acquire revenue on the sum loaned. Then again, borrowers can take out credits by giving security as digital currencies. The borrowers pay interest on the credit, and in the event that they neglect to reimburse, the guarantee can be exchanged to cover the obligation.
Voyager's lending program regularly includes stablecoins or other famous cryptographic forms of money as security, and the financing costs and terms change in light of economic situations and the particular cryptocurrency being acquired or loaned.
It's critical to take note of that this data is exact as of my insight cutoff in September 2021. Crypto lending platforms and their particular elements can change over the long run, so it's consistently smart to check Voyager's website or contact their client care for the most state-of-the-art data on their loaning administrations.
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