The Federal Deposit Insurance Corporation (FDIC), a US government agency tasked with stabilizing the financial system in the event of bank failures, on Friday issued five cease-and-desist letters demanding five crypto-related firms stop making false and misleading statements about the availability of deposit insurance for their clients.
The FDIC ordered five firms behind certain crypto websites — including FTX US, Cryptonews.com, Cryptosec.info, SmartAsset.com, and FDICCrypto.com — to “take immediate corrective action to address false or misleading statements concerning whether their customers' funds were insured by the federal agency.”
Under the Federal Deposit Insurance Act, the FDIC has the power to prohibit use of the agency's name or logo to imply customer funds are government insured when they are not.
In a statement, the regulator said: “Based upon evidence collected by the FDIC, each of these companies made false representations —including on their websites and social media...
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