FDIC accuses FTX.US of misleading customers

FDIC sent FTX.US a demand letter ordering immediate measures to correct its ‘misleading’ statements about deposit insurance.

Similar complaints from regulators were received by Cryptonews.com, Cryptosec.info, SmartAsset.com and FDICCrypto.com.

Based on the evidence gathered, each of these companies made false statements […], that some cryptocurrency-related products or shares held in brokerage accounts are insured by the FDIC, according to the press release.

FTX chief Sam Bankman-Fried explained in response that the exchange is not part of the FDIC-insured institutions system, but that status exists for its banking partners.

1) Clear communication is really important; sorry!

FTX does not have FDIC insurance (and we’ve never said so on website etc.); banks we work with do. We never meant otherwise, and apologise if anyone misinterpreted it. https://t.co/MHMSMDE8Le

— SBF (@SBF_FTX) August 19, 2022

We never meant otherwise, and we apologise if anyone misinterpreted this, he said.

Earlier, U.S. authorities required Voyager to remove references to FDIC deposit protection.

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