Bloomberg Law
July 29, 2022, 5:28 PM

FDIC Says Crypto Assets Aren’t Protected After Voyager Confusion

Alex Nguyen
Alex Nguyen
Bloomberg News

The Federal Deposit Insurance Corp., which protects customers in certain bank failures, has reiterated that it doesn’t insure crypto assets.

The agency released an advisory on Friday to clarify the scope of its safeguards, and said several crypto companies had led customers to mistakenly believe that their products were FDIC-insured. The move comes a day after the agency demanded Voyager, a bankrupt crypto company that partnered with FDIC-insured Metropolitan Commercial Bank, to correct “false and misleading statements” about its deposit insurance coverage.

Voyager had said that US dollars deposited with it were covered by FDIC insurance because of its partnership ...