Canadian crypto exchange begins bankruptcy proceedings.

This week the Canadian crypto exchange began bankruptcy proceedings.

The Federal Deposit Insurance Corporation (FDIC) is investigating claims by crypto broker Voyager that its customer accounts were protected by that agency in the event of a company collapse, as reported by the Wall Street Journal on Thursday.

The company Voyager, which filed for bankruptcy protection earlier this week, reported that it had assets and liabilities in the range of $1 to $10 billion.

The Federal Deposit Insurance Corporation (FDIC) - a federal regulator responsible for monitoring the stability of banks in the US - protects customers from losing their money in case of a bank collapse, insuring up to $250,000 per account. This insurance, however, usually only applies to an actual bank failure and not upon the failure of its client - Voyager's collapse would not necessarily trigger an FDIC backstop.

In its previous advertising, Voyager appeared to be saying that its own customers would be protected by the FDIC, pointing to its accounts at Metropolitan Commercial Bank. For its part, Metropolitan this week published a statement on its website denying the Voyager claim.

The statement explained that only Metropolitan Commercial Bank can be protected by the FDIC, and that it does not cover Voyager or any of its employees.

The bank's statement clarified that Voyager maintained a single account for U.S. dollars, the report continued.

According to the Wall Street Journal, Voyager's customer deposits at Metropolitan would be segregated from other Voyager assets in a bankruptcy and protected from creditors. The value of Voyager's current holdings was estimated at $350 million (it has another $110 million in cash on hand, as well as over $1 billion in crypto).

A spokesperson from the Federal Deposit Insurance Corporation (FDIC) did not respond to a request for comment by the time of publishing.