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The Federal Deposit Insurance Corporation (FDIC), a U.S. government agency that provides deposit insurance to customers of insured banks, has warned cryptocurrency exchange FTX US about false and misleading statements regarding FDIC deposit insurance. did.
The agency suspension and termination letter to the US-based cryptocurrency platform comes after the FDIC sent a similar warning to FTX US president Brett Harrison.
Besides the exchanges, four other crypto-related companies also received letters from the US watchdog, according to details shared. press release On Friday.
Others warned are Cryptonews.com, Cryptosec.info, SmartAsset.com, and FDICCrypto.com.
The FDIC has found evidence that publicly traded companies have misrepresented or made false claims regarding FDIC insurance for certain cryptocurrency-related products and stocks, “including on their websites and social media accounts.” says there is.
“In one case, a so-called cryptocurrency provider also registered a domain name that suggested an affiliation or endorsement with the FDIC.These representations are false and misleading warned the agency.
On Thursday, the FDIC will written We posted on FTX US about the issue, highlighting a tweet shared by Harrison on July 20th. In a tweet, the FTX US boss said, “Direct deposits from her employer to FTX US are held in her FDIC-insured bank account separately in the user’s name.” rice field.
The agency also flagged claims that “the shares are held in FDIC and SIPC insurance brokerage accounts.”
Similarly, FTX US was described as insured by the FDIC on the two websites above. Regulators say such allegations are likely to mislead or harm consumers. The agency said FTX US does not have FDIC insurance.
and Tweet Acknowledging the FDIC’s warning, Harrison said:
“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 an insured bank (i.e. Evolve Bank).
In its request for suspension and withdrawal, the FDIC asked FTX US to remove all references to deposit insurance claims that were shown to be false.
Also, except to ensure that this is not repeated at any other time or format, exchanges must write to the agency within 15 days of receiving the letter to confirm compliance.
