U.S. FDIC Probes Crypto Lender Voyager Marketing for Deposit Accounts

(Reuters) -The Federal Deposit Insurance Company is on the lookout into Voyager Digital Ltd’s internet marketing of deposit accounts for cryptocurrency purchases, an FDIC official mentioned, confirming a report in the Wall Avenue Journal.

Consumers who assumed their deposits have been insured by the FDIC acquired if not immediately after Voyager submitted for personal bankruptcy and a banking regulator started an inquiry, the report explained. https://on.wsj.com/3ygW7wE The FDIC official did not did not remark on details of the probe.

The battered crypto brokerage and financial institution filed for personal bankruptcy very last week, getting the most up-to-date casualty of a drastic fall in cryptocurrency selling prices.

Voyager declined to remark on the probe.

Crypto loan companies boomed for the duration of the pandemic, but have not too long ago operate into challenges following the downfall of a big token in May and worldwide risk-off sentiment.

Voyager said past week it had much more than $110 million of hard cash and owned crypto property on hand. It intends to pay workforce in the common manner and go on their key benefits and selected shopper courses with out disruption.

The agency did not have accessibility to buyer money for its personal applications and the money, secured from creditors, is also segregated from its property in individual bankruptcy, the WSJ report claimed.

(Reporting by Mehnaz Yasmin in Bengaluru and Hannah Lang in Washington Enhancing by Shailesh Kuber, Devika Syamnath and David Gregorio)