Regulation

FDIC sends 5 companies, including FTX.US, cease and desist letters for making false statements about deposit insurance

The Federal Deposit Insurance coverage Corp. (FDIC) stated Aug. 19 that it has issued letters demanding Cryptonews.com, Cryptoytosec.info, SmartAsset.com, FTX.US and FDICCrypto.com to cease making deceptive statements about FDIC deposit insurance coverage and implement corrective measures. 

FDIC deposit insurance coverage protects clients within the unlikely occasion of the failure of an FDIC-insured financial institution.  

Within the stop and desist letters despatched Aug. 18, the FDIC demanded that the businesses, their officers and staff abstain from alluding to any presence of FDIC deposit insurance coverage at sure exchanges or their very own platforms. It additionally demanded that the businesses take speedy measures to appropriate any false and deceptive statements made beforehand. 

The FDIC alleges within the textual content of the letters that every entity has purportedly misrepresented the depository insurance coverage standing of holdings or furthered falsehoods in regards to the protection of deposit insurance coverage. 

Primarily based on the proof introduced by the FDIC within the letter, every of the businesses allegedly made false representations — together with on their web sites and social media accounts — stating or suggesting that sure crypto-related merchandise are FDIC-insured or that shares held in brokerage accounts are FDIC-insured. 

Extra particulars to comply with…

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