FDIC Issues Cease and Desist to FTX and 4 Others

The Federal Deposit Insurance Corporation issued cease and desist letters to five Crypto-related companies on Friday. The letters are in regards to "false and misleading statements about FDIC deposit insurance."

FTX US is the most notable name to receive the notice. FTX US is one of the leading centralized cryptocurrency exchanges in the world, founded by Sam Bankman-Fried and the platform specializes in derivative and leverage products.

The false representations were included on the companies' websites and social media account and the FDIC have deemed the messages misleading. "The Federal Deposit Insurance Act prohibits any person from representing or implying that an uninsured product is FDIC-insured or from knowingly misrepresenting the extent and manner of deposit insurance," FDIC states.

The other sites that received the letter are Cryptonews.com, Cryptosec.info, SmartAsset.com, and FDICCrypto.com.

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Lou Sherman

Lou Sherman is a Content Specialist at Lucky Trader. Lou has been in crypto and NFTs since 2018 and owns Moonbirds, Cryptoon Goonz, and Purrnelope's Country Club NFTs.

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