Thursday, December 1, 2022

FDIC reportedly scrutinizing Voyager Digital marketing; complex SBF ties come to light


Some Voyager Digital account holders have been shocked after they found that their deposits didn’t have the safety they thought they did after the crypto brokerage and lender filed for chapter Tuesday. This might imply further penalties for Voyager Digital. 

Voyager Digital filed for bankruptcy under Chapter 11, citing money owed of up to $10 billion to 100,000 collectors in a disaster introduced on after Singaporean hedge fund Three Arrows Capital (3AC) default on a mortgage of 15,250 Bitcoin (BTC) and 350 million USD Coin (USDC) per week earlier.

According to Voyager Digital’s web site, “Your USD is held by our banking partner, Metropolitan Commercial Bank, which is FDIC insured, so the cash you hold with Voyager is protected.” The financial institution holds $350 million in Voyager Digital prospects’ deposits.

The United States Federal Deposit Insurance Corporation (FDIC) insures accounts for up to $250,000 per depositor in case of the failure of the financial institution, the Metropolitan Commercial Bank defined in an announcement, including that the FDIC doesn’t present safety towards Voyager Digital’s failure or towards the lack of cryptocurrency.

According to The Wall Street Journal on Thursday, unnamed sources mentioned Voyager Digital depositors have been expected to obtain all of the money from their accounts held within the financial institution ultimately, as Voyager Digital promised. A supply additionally instructed the newspaper that the FDIC was trying onto Voyager Digital’s advertising.

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Voyager Digital mentioned its proposed reorganization plan foresaw that, topic to varied contingencies, “customers with crypto in their account(s) will receive in exchange a combination of the crypto in their account(s), proceeds from the 3AC recovery, common shares in the newly reorganized Company, and Voyager tokens.”

It was additionally seen that Voyager Digital had a complex monetary relationship with Alameda Research, which is backed by Sam Bankman-Fried. Alameda Research is concurrently Voyager Digital’s largest shareholder, second largest creditor at $377 million, and it owes Voyager Digital $75 million.