FDIC reportedly reviewing Voyager Digital's marketing; complex SBF links appear

Some Voyager Digital account holders were surprised when they discovered their deposits lacked the protection they thought they had after...



Some Voyager Digital account holders were surprised when they discovered their deposits lacked the protection they thought they had after the crypto broker and lender filed for bankruptcy on Tuesday. This could mean additional consequences for Voyager Digital.

digital travel filed for Chapter 11 bankruptcyciting debts of up to $10 billion to 100,000 creditors in a crisis sparked after Singaporean hedge fund Three Arrows Capital (3AC) defaulted on a 15,250 Bitcoin loan (BTC) and 350 million USD Coin (USDC) a week earlier.

According to Voyager Digital’s website, “Your USD is held by our banking partner, Metropolitan Commercial Bank, which is FDIC insured, so the money you hold with Voyager is protected.” The bank holds $350 million in deposits from Voyager Digital customers.

The U.S. Federal Deposit Insurance Corporation (FDIC) insures accounts for up to $250,000 per depositor in the event of bank default, the Metropolitan Commercial Bank said in a statement, adding that the FDIC does not provide protection. against the failure of Voyager Digital or against the loss of cryptocurrency.

According to The Wall Street Journal on Thursday, unnamed sources said Voyager Digital depositors were expected eventually receive all the money from their accounts held in the bank, as promised by Voyager Digital. A source also told the newspaper that the FDIC is reviewing Voyager Digital’s marketing.

Related: Circle Seeks to Reaffirm Commitment to Transparency as USDC Market Share Soars

Voyager Digital said its proposed reorganization plan provides that, subject to various 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 stock in the newly reorganized Company, and Voyager tokens.

It has also been noticed that Voyager Digital has a complex financial relationship with Alameda Research, which is backed by Sam Bankman-Fried. Alameda Research is simultaneously Voyager Digital’s largest shareholder, second largest creditor with $377 million, and owes Voyager Digital $75 million.