The US Federal Deposit Insurance Corporation (FDIC) is investigating Voyager Digital’s activities. According to the agency, the cryptocurrency broker deceived users by stating that their assets are protected by the agency’s program.

On July 5, Voyager Digital filed for bankruptcy in New York court. The company’s estimated liabilities range from $1 billion to $10 billion with nearly 100,000 customers.

A similar petition under Section 11 of the US Bankruptcy Code was filed by subsidiaries – Voyager Digital Holdings Inc and Voyager Digital LLC. The company expects its financial restructuring process to “maximize value for all stakeholders.”

Voyager has approximately $1.3 billion on the platform, more than $350 million in an account with Metropolitan Commercial Bank, and over $650 million in claims against Three Arrows Capital. In addition, the company “has approximately $110 million in cash and its own crypto assets. . ”

The broker said its clients’ assets are covered by the FDIC deposit insurance program through cooperation with the Metropolitan Commercial Bank.

“This means that in the rare event that our dollar reserves are compromised, a full refund (up to $250,000) is guaranteed, thereby protecting the cash in Voyager accounts,” the company said in a December 18, 2019 publication.

However, this is a modified statement. According to the Wayback Machine, the original statement is as follows:

“[…]In the rare event that our dollar reserves are compromised due to a mistake by our company or our bank partner […]”.

The Metropolitan Commercial Bank website says the bank maintains “an omnibus account dedicated to Voyager customers.” Assets in this account are insured by the FDIC, but collateral is available “for bankruptcy protection only” by the lending institution:

“FDIC insurance does not protect against losses related to the collapse of Voyager, the acts or omissions of the company or its employees, or a drop in the price of cryptocurrencies or other assets.”

Speaking to Bloomberg, an FDIC spokesperson emphasized that Metropolitan Commercial Bank is insured by the agency, but Voyager Digital is not. According to him, the department’s program does not protect the broker’s clients from default, bankruptcy or blocking of funds.

Previously, Alameda Research provided a loan of 200 million USDC and a 15,000 BTC revolving line of credit to a cryptocurrency broker.

Recall that Binance head Changpeng Zhao criticized the deal and said he would “never accept such a deal”.

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