Voyager Digital recently suspended withdrawals and filed for bankruptcy protection as a result of the recent cryptocurrency market crash.
As a result of these decisions, a YouTuber investigating online fraud decided to investigate the company’s demise and explained why its practices may not be entirely legal.
Stephen Findeisen, aka Coffeezilla, listed in his latest video on July 13 all the things he found out that Voyager lied to its customers about.
Did Voyager deceive its customers?
According to Findeisen, Voyager guaranteed up to 10% return on invested amounts, in addition to claiming that they had a low-risk investment approach and could withstand any market downturn.
In addition, the company granted more than $0.55 billion of its clients’ loans to a single fund, Three Arrows Capital (3AC), which, in turn, invested this money in Terra (LUNA).
In other words, this meant that the company’s supposedly low-risk approach was used by Voyager as a kind of fake marketing to lure users to the platform.
The company also made claims about FDIC insurance as part of the partnership with Metropolitan Bank. However, it had not informed its customers that this insurance only covered its assets in the event of a bank failure, not Voyager’s own.
Findeisen questioned in the video the justification for Voyager’s bankruptcy filing, which allows a company to restructure its business to pay off debt while operations are on hold.
According to the Youtuber’s statements, Voyager has shown different red flags over the last few months and should be held responsible for the damage caused to the different users of the platform.