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Customers who assumed their deposits were insured by the FDIC learned otherwise after Voyager filed for bankruptcy and a banking regulator began an inquiry, the report said. https://on.wsj.com/3ygW7wE
The battered crypto brokerage and lender filed for bankruptcy last week, becoming the latest casualty of a drastic fall in cryptocurrency prices.
Voyager did not immediately respond to a Reuters request for comment.
After booming during the pandemic, crypto lenders have recently run into difficulties following the downfall of a major token in May and global risk-off sentiment.
Voyager said last week it had more than $110 million of cash and owned crypto assets on hand. It intends to pay employees in the usual manner and continue their primary benefits and certain customer programs without disruption.
The firm did not have access to customer funds for its own purposes and the money, protected from creditors, is also segregated from its assets in bankruptcy, the WSJ report said.
