Regulators Order Crypto Firm to Cease Claiming that Digital Assets Are FDIC-Insured

The FDIC and the Federal Reserve Board issued a joint letter to digital asset custodian Voyager Digital, LLC ("Voyager") stating that the firm has been falsely claiming that persons who have opened accounts with Voyager benefit from FDIC insurance.

In the letter, the agencies described the Voyager statements as "false and misleading," adding that such statements have been relied upon by customers. The agencies demanded corrective action, including the removal of any statement suggesting that customers benefit from FDIC insurance, and warned that future legal action could be forthcoming.

In a related advisory, the FDIC issued a warning to consumers that FDIC insurance does not protect crypto deposits at the various types of digital asset custodians. According to the FDIC, a number of crypto companies have made false representations leading depositors to believe they were covered by FDIC insurance.