Cryptocurrency

FDIC sends 5 companies, including FTX.US, cease and desist letters for making false statements about deposit insurance

The Federal Deposit Insurance Corporation (FDIC) said: August 19th issued a letter requesting Cryptonews.com, Cryptoytosec.info, SmartAsset.com, FTX.US When FDICCrypto.com Stop making misleading statements about FDIC Deposit Insurance and take corrective action.

FDIC Deposit Insurance protects customers in the unlikely event that an FDIC-insured bank fails.

In a cease and desist letter sent on August 18, the FDIC asked companies, their officers and employees to refrain from implying the existence of FDIC deposit insurance on any particular exchange or on their platform. It also called on companies to take immediate steps to correct false and misleading statements previously made.

In its letter, the FDIC alleges that entities misrepresent the deposit insurance status of their assets or promote misrepresentations about deposit insurance coverage.

Based on the evidence provided by the FDIC in its letter, each company confirmed that certain crypto-related products were insured by the FDIC, including its website and social media accounts, or that its shares were held in brokerage accounts. allegedly made a false statement stating or implying that We are insured with the FDIC.

More to come…

Posted In: Law, Regulation

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