US FDIC Warns FTX and Others to Stop "Misleading" Claims

by in Cryptocurrency News

FDIC crypto FTX

On August 19, The Federal Deposit Insurance Corporation of the US released cautionary letters to 5 entities, and individuals saying they've made false and deceptive descriptions about digital asset products and the agency.

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The firms receiving such letters are FTX US,,,, and In a press release the financial regulator says these companies made false introductions while representing their crypto products. According to FDIC, they state or suggest that some of their products are FDIC–insured or that stocks kept in investment accounts are FDIC–insured.

FDIC told the firms to take actions to address the issue. The agency noted that the law doesn’t allow companies to say that their products are secured by the insurance of the agency. The businesses shouldn't use "FDIC" in their name, ads, or other statements.

Earlier, the regulator published an advisory related to deposit insurance and dealings with cryptocurrency companies. The letter said institutions insured by FDIC need to assess, manage, and control risks coming from crypto and other third party companies.