A Day Late and A Dollar Short
Market Meditations | July 29, 2022
Prior to the downfall of Terra, 3AC, Celsius, and Voyager, some crypto users felt relatively safe entrusting their crypto to a centralised third party. One of the companies that garnered a lot of trust was Voyager. It appeared to be a safe bet, considering it was traded on the Toronto Stock Exchange, and even offered FDIC Insurance on deposits, or so they claimed.
- The Federal Deposit Insurance Corporation (FDIC) is an independent agency created by congress to maintain stability and public confidence in the nation’s financial system by insuring deposits and examining and supervising financial institutions for safety, soundness, and consumer protection. They protect and reimburse deposits up to the legal limit of $250,000.
- On July 28th the FDIC finally addressed Voyager’s claims about having this insurance for depositors by demanding that they “immediately remove” any statements or references suggesting the company is FDIC insured.
- Voyager must also send a letter to the FDIC stating that they have removed the claims, and provide details on what actions they took to comply.
- The FDIC told Voyager that if they believe their claims to be true, they must provide written confirmation within 2 business days from receipt of the letter, along with any supporting documents that lead them to believe such.
The insured status of Voyager appears to be a point of contention for the FDIC. For some users of the service, hope has been put on hold.