FDIC is reviewing Voyager Digital's marketing

After cryptocurrency brokerage and lender Voyager Digital filed for bankruptcy on Tuesday, some Voyager Digital account holders were surprised to find out that their deposits were not as protected as they thought they were. That could mean additional ramifications for Voyager Digital.

Voyager Digital filed for Chapter 11 bankruptcy on the grounds that Singaporean hedge fund Three Arrows Capital (3AC) defaulted on 15,250 Bitcoin (BTC) and 350 million USDC a week ago, leaving it with debts of up to $10 billion with 100,000 creditors .

According to Voyager Digital's website, "Your dollars are held with our banking partner, Metropolitan Commercial Bank, which is FDIC insured, so your cash held with Voyager is protected." The bank Holds $350 million in Voyager Digital customer deposits.

Metropolitan Commercial Bank explained in a statement that the Federal Deposit Insurance Corporation (FDIC) insures each depositor’s account up to $250,000 in the event of a bank failure, adding that the FDIC does not provide coverage against Voyager Digital’s failure or against Loss of cryptocurrency.

As promised by Voyager Digital, Voyager Digital depositors are expected to eventually receive all the cash in their accounts with the bank, the Wall Street Journal reported on Thursday, unnamed sources said. A source also told the Journal that the FDIC is looking at Voyager Digital's marketing efforts.

Voyager Digital said its proposed reorganization plan foresees that under various contingencies, "customers with cryptocurrencies in their accounts will receive the combination of cryptocurrencies in their accounts, proceeds recovered by 3AC, common stock of the newly reorganized company and Voyager tokens."

It was also noted that Voyager Digital has a complicated financial relationship with Alameda Research, backed by Sam Bankman-Fried. Alameda Research is also Voyager Digital's largest shareholder and second-largest creditor, with $377 million in liabilities and $75 million owed to Voyager Digital.