https://www.wsj.com/articles/fdic-scrutinizing-voyagers-mark…
**FDIC Scrutinizing Voyager’s Marketing on Safety of Customer Deposit Accounts**
**Voyager Digital had said customer dollar deposit accounts were FDIC insured**
**By David Benoit, The Wall Street Journal, July 7, 2022**
**...**
**Voyager, a brokerage and lender,froze all activity, including withdrawals on $350 million in customer deposits that are stored at Metropolitan Commercial Bank, a small New York bank. Voyager said customers would be able to access those dollars after “a reconciliation and fraud prevention process is completed.”...**
**Thursday its website said “Your USD is held by our banking partner, Metropolitan Commercial Bank, which is FDIC insured, so the cash you hold with Voyager is protected.”**
**The individual customer accounts are eligible for insurance, but only in the case of a failure of the bank, not Voyager, Metropolitan Commercial Bank said this week. That is typical since the FDIC only backstops participating banks....** [end quote]
Voyager has what is known as a For Benefit of Customers account at Metropolitan Commercial Bank, split into sub-accounts for individuals. The FDIC is investigating. It’s not clear yet what will happen.
All crypto currency held by Voyager went >poof!< because the FDIC doesn’t insure brokerages or crypto.
Wendy