FTC sues bankrupt crypto company Voyager’s CEO over false FDIC insurance claims – By Amanda Silberling (Techcrunch) / Oct 12, 2023
After settling on Thursday with the Federal Trade Commission (FTC), bankrupt crypto company Voyager is permanently banned from handling consumers’ assets. But the government agency also announced on Thursday that it’s suing Voyager’s former CEO, Stephen Ehrlich, for falsely claiming that users’ accounts were FDIC insured.
When a bank or financial service is FDIC insured, that means that a customers’ funds will be protected even if the bank fails. While Voyager promised customers this vital protection, these claims weren’t true, as the FDIC doesn’t insure crypto assets at all.
“When the company failed, consumers lost access to significant assets they had saved, including ongoing salary deposits, college tuition funds, and down payments for homes,” the FTC explained in a statement. Voyager’s customers were unable to access their cash accounts for over a month, and more than $1 billion was lost in crypto assets.
