Commentary
When Canadian cryptocurrency broker and lender Voyager Digital filed for bankruptcy in July, it created some confusion across its customers about their deposits and whether they were FDIC insured.
U.S. regulated bank deposits are insured by the Federal Deposit Insurance Corporation (FDIC) up to a certain amount. This serves as a protection for customers in case of isolated bank failures.
Are cryptocurrencies FDIC insured? Of course not.
Voyager executives had said in the past that customers’ U.S. dollar funds would be FDIC insured. Those dollars, around $350 million in cash, were held in an omnibus account at Metropolitan Commercial Bank of New York….