Following a request from the FDIC to stop making misleading statements about FTX insurance, FTX CEO Sam Bankman-Fried turned to Twitter for crisis management. The SBF said the message was “confusing” regarding the actions FTX has taken to distance itself from protocols that may not comply with US sanctions.
For clarity, this is garbled. We constantly monitor transactions for AML compliance and have increased due diligence on certain transactions, but this does not mean that your account has been frozen. https://t.co/FVOGHUa4TJ
—SBF (@SBF_FTX) August 19, 2022
The confusion was caused by FTX allegedly freezing user accounts for interacting with the Aztec Network. This seems to think the protocol may be targeted by OFAC. SBF’s remarks came after the company’s president, Brett Harrison, deleted a tweet at his FDIC’s direction on a busy night at FTX.more Harrison said That FTX “didn’t mean to mislead anyone”.
The tweet has been deleted as directed by the FDIC. This tweet was written in response to a question posed on Twitter regarding whether US dollar direct deposits from employers are held in insured banks (i.e. Evolve Bank).
— Brett Harrison (@Brett_FTX) August 19, 2022
However, Harrison did not remove all references to FDIC insurance. Tweet I will clarify below. It’s unclear if the tweet was intentionally left by the FDIC and FTX or simply missed.
This is a developing story. This article will be updated accordingly.
Post-FTX backtracks with FDIC insurance, but fails to remove all references originally seen on CryptoSlate.