Crypto firm

under fire for making false claims to its customers

Crypto lending firm, now Bankrupt, Voyager receives a warning from The Federal Reserve and Federal Deposit Insurance Corp. to not make false claims about government protection to its customers.

The U.S. regulators issued a letter to the company saying,  “These representations are false and misleading and, based on the information we have to date, it appears that the representations likely misled and were relied upon by customers who placed their funds with Voyager and do not have immediate access to their funds."

Voyager previously filed for bankruptcy for protection after losing millions of dollars from the 3AC bankruptcy. When the customers demanded a payback of their funds, the crypto firm claimed their funds were safely stored in a separate account.

On its official Twitter account, Voyager claimed that the USD held in Voyager was FDIC-insured. However, FDIC claims they never made such a statement and asked the crypto firm’s CEO Stephen Ehrlich to remove this claim from Voyager’s platforms.

FDIC also asked Voyager that if such a statement was made, the crypto firm is liable to provide evidence through official documents, otherwise, Fed and FDIC will take severe action against Voyager.

The crypto lending firm seems to be struggling with satisfying its customers' suspicions who lost access to their own funds in Voyager’s account.

With the FDIC’s harsh criticism, Voyager will have to face public criticism that might deteriorate its position in the market.