Home Crypto News US Regulators Order Voyager to Take away Deceptive Messages

US Regulators Order Voyager to Take away Deceptive Messages

by Cryptoroz

Even after declaring chapter, Voyager continues to have issues with governmental establishments.

Voyager, a crypto change based in 2018 by Stephen Ehrlich, has been warned by The Federal Reserve and Federal Deposit Insurance coverage Company to cease making false claims or further measures might be taken

Based on the letter issued on July twenty eighth, the establishments have seen that Voyager claims that the entire buyers’ funds might be protected by the federal government in case the corporate goes bankrupt.  

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Within the joined letter, US regulatory establishments clarify why this assertion isn’t right: 

Voyager maintains a deposit account for the advantage of its clients at Metropolitan Industrial Financial institution, which is supervised by the Board. Voyager shouldn’t be itself insured by the FDIC, although, and so clients who invested via its cryptocurrency platform wouldn’t obtain insurance coverage protection within the occasion of Voyager’s failure.

The crypto change is blamed for giving “false and deceptive” representations of its performance. The establishments additionally spotlight that as a result of messages that crypto change shared on their web site or social media platforms, some buyers selected Voyager funds exactly due to these claims

Within the additional elements of the joined letter, the establishment orders Voyager to take away the false claims in regards to the firm being FDIC-insured. Furthermore, the company desires to obtain not solely the proof of taking this motion but additionally an in-depth report on how Voyager eliminated these false messages.

The letter has been despatched to Voyager CEO Stephen Ehrlich, nonetheless, the corporate has but to offer its response to declared points

It’s value noting that originally of July, Voyager declared chapter after having its buyer property withdrawn. 

In different information, Voyager had a possibility to at the very least partially save its buyer funds, nonetheless, denied it. On July 22th, FTX and Alameda proposed a joint supply to purchase all Voyager’s digital property and digital asset loans, excluding Three Arrows Capital (3AC) loans.

Aaron S. - Expert Reviewer

by Aaron S. – Professional Reviewer, BitDegree

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