It's bad enough that millions of cryptocurrency investors have lost nearly all of their initial money after the industry began crashing earlier this year, but now it looks as though federal taxpayers are also going to be on the hook.

According to a report by Wall Street On Parade, Sen. Elizabeth Warren (D-Mass.) tipped everyone off to the coming disaster — probably inadvertently — with remarks she made last week during a Senate Banking, Housing and Urban Affairs hearing.

Warren garnered the attention, too, of federal regulators when she said that Voyager, a crypto platform that filed for bankruptcy protection early last month, had promoted itself as an FDIC-insured financial instrument. "FDIC stands for Federal Deposit Insurance Corporation and is the federal agency that oversees federal deposit insurance for the nation's regulated banks and savings associations," the WSOP report stated.

It should be noted, however, that crypto trading platforms are currently not regulated by the federal government. Also, they have been regularly linked to criminal activities, and they are quickly going broke or filing for bankruptcy while blocking customers from making withdrawals of their liquid assets and/or their cryptocurrencies.

If these rank, corrupt platforms were allowed to be within a stone's throw of a federally insured bank there is no question that the public's trust in the country's federal regulatory processes for banking and investment would collapse. That said, federal bank regulators have known for years that federally insured banks were taking in crypto companies but have instead chosen to look away and ignore what was taking place, WSOP reported.