Marketing assets

US FDIC probes crypto lender Voyager’s marketing for deposit accounts

July 7 (Reuters) – The Federal Deposit Insurance Corporation is investigating Voyager Digital Ltd’s (VOYG.TO) marketing of deposit accounts for cryptocurrency purchases, an FDIC official said, confirming a Wall Street Journal report .

Customers who assumed their deposits were FDIC-insured learned otherwise after Voyager filed for bankruptcy and a banking regulator opened an investigation, the report said. https://on.wsj.com/3ygW7wEThe FDIC official did not comment on the details of the investigation.

The battered brokerage firm and crypto lender filed for bankruptcy last week, becoming the latest victim of a drastic drop in cryptocurrency prices. Read more

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Voyager declined to comment on the probe.

Crypto lenders have boomed during the pandemic, but have recently struggled following a major token drop in May and global risk sentiment. Read more

Voyager said last week that it had more than $110 million in cash and owned crypto assets. It intends to pay employees in the usual manner and to maintain their core benefits and certain customer programs uninterrupted.

The company has not had access to customer funds for its own purposes and the money, protected from creditors, is also separated from its bankrupt assets, according to the WSJ report.

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Reporting by Mehnaz Yasmin in Bengaluru and Hannah Lang in Washington; Editing by Shailesh Kuber, Devika Syamnath and David Gregorio

Our standards: The Thomson Reuters Trust Principles.