Lawsuit Alleges Bank's Role in Voyager Crypto Collapse

Metropolitan Commercial Bank (MCB) is accused of enabling Voyager Digital’s misleading practices that led to massive customer losses, according to a lawsuit filed by Michael Wyse, Voyager’s wind-down plan administrator, reports Banking Dive. The lawsuit alleges that MCB knowingly allowed Voyager to falsely market its platform as protected by FDIC insurance, even though crypto deposits were never covered.

Wyse claims MCB was instrumental in Voyager’s operations by suggesting the promotion of FDIC insurance as a key marketing tool and by helping Voyager sidestep money transmitter license requirements. Without MCB’s support, Voyager would have faced stricter regulations and financial obligations, potentially mitigating customer losses, Wyse asserts.

At the time of its bankruptcy, Voyager owed U.S. customers $1.7 billion, much of which remains unpaid. Wyse, representing nearly 32,000 creditors, is seeking damages, including punitive and legal costs. MCB, which has since exited the crypto and banking-as-a-service markets, denies the claims and intends to defend itself vigorously, asserting that Voyager’s deceptive practices were solely its own responsibility.