Marketed as FDIC-insured, which regulators subsequently ordered corrected. Customer USD sat at a partner bank while customers were creditors of Voyager, and lending exposure to a failed fund drove the insolvency.
Insurance language is frequently misunderstood and sometimes misused. Verify precisely what is covered, against which event, and for whose benefit.
These are the custody configurations structurally exposed to this kind of event. It describes the failure class, not any individual holder.
Whether your own arrangement sits in one of those groups is the question our Custody Independence Standard is designed to answer, and the four questions in Is your custody setup actually safe? walk through it.
FDIC and Federal Reserve joint statement, Chapter 11 filings
Figures are as reported by the named sources. Proof of Custody has not independently reproduced the underlying analysis.
Proof of Custody, "Voyager Digital" incident record, proofofcustody.io/incidents/voyager-2022Marketed as FDIC-insured, which regulators subsequently ordered corrected. Customer USD sat at a partner bank while customers were creditors of Voyager, and lending exposure to a failed fund drove the insolvency. Reported loss: Hundreds of millions.
Insurance language is frequently misunderstood and sometimes misused. Verify precisely what is covered, against which event, and for whose benefit.
This class of failure could reach: bitcoin lent or earning yield; bitcoin left on an exchange. It describes the failure class rather than any individual holder.