Banking

FDIC declares 5 crypto business misguided on deposit insurance coverage

The FDIC today sent out cease-and-desist letters to 5 business that the firm declares misguided customers into thinking that cryptocurrency possessions are covered by FDIC deposit insurance coverage. The firm bought the business and their workers to stop making incorrect claims about deposit insurance coverage “and take immediate corrective action to address these false or misleading statements,” according to a declaration.

The letters to Crypto News, CryptoSec, SmartAsset, FTX United States and FDICCrypto.com mention examples of declarations or recommendations by the business “that certain crypto-related products are FDIC-insured or that stocks held in brokerage accounts are FDIC-insured.” The firm singled out FDICCrypto.com for a web address “that suggests affiliation with or endorsement by the FDIC.” The cease-and-desist letters came approximately 3 weeks after FDIC provided an advisory to banks concerning what it states were misstatements by some cryptocurrency business that their items are qualified for deposit insurance protection.

Gabriel

A news media journalist always on the go, I've been published in major publications including VICE, The Atlantic, and TIME.

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