Former FDIC Regulator On What Comes Next In The Agency’s Investigation Of Bankrupt Crypto Brokerage Voyager Digital
— Insured, Fdic, Commercial, Bank, Brokerage, Bankrupt, Regulator, Agency, Voyagers, Investigation — 1 min read
The Federal Deposit Insurance Corporation is looking into Voyager Digital after it claimed customers' dollar deposits were insured by the agency. The brokerage said it insured any USD held with Voyager because of its “strategic partnership” with Metropolitan Commercial Bank. However, Voyager held an omnibus account at the New York-based bank. The real issue is how Voyager portrayed the relationship between itself and Metropolitan Commercial, says former FDIC regulator and Forbes contributor Jason Brett. If the FDIC finds Voyager to have falsely represented its relationship with the agency, the agency could sanction them even after their declared bankruptcy, including banning Voyager for life from the financial services industry, according to Brett. While the agency does not insure cryptocurrencies, the question on how crypto assets held in banks insured by Source