This alert may not be shared outside your organization, Do Not Repost or send, place on other websites, List servers, or send to others via email, including other associations or parties. Members and Law enforcement use only. Contact us for any permissions. To do otherwise will result in the loss of membership.
Crypto companies touting FDIC insurance? Not so fast.
If your bank is FDIC insured, you’re protected up to $250,000 if the bank fails. But what about the funds you deposit with a crypto-based financial services provider? Nope. That money isn’t FDIC insured or protected if the crypto company goes under. But that’s exactly what one crypto company promised.
According to the FTC, Voyager Digital LLC, a crypto-based financial services provider, misled people with claims that money deposited through a “Voyager App” was FDIC insured if anything went wrong. The FTC says that Voyager advertised itself as a safe and secure bank alternative for people to store money. Voyager’s messaging also encouraged people to “ditch” their regular bank and use Voyager’s debit card instead.