FDIC: FTX.US and Five Crypto Firms Falsely Represent Deposit Insurance

The Federal Deposit Insurance Corporation (FDIC) sent letters to FTX.US, Cryptonews.com, FDICCrypto.com, SmartAsset.com, and Cryptosec.info to correct their misrepresentations about the FDIC. The above-mentioned companies all state or imply on their websites and social media accounts that certain crypto-related products are FDIC-insured, or that stocks held in brokerage accounts are FDIC-insured, the FDIC said. Cryptocurrency companies are not covered by the FDIC, the FDIC said late last month. According to the FDIC, FTX.US President Brett Harrison once stated in a tweet that FTX.US’s stock trading funds were deposited in an FDIC insured account, and the tweet has now been deleted. Brett Harrison said the tweet was made in response to a statement on whether deposits were held at Evolve, an FDIC-insured bank, and was not intended to be misleading.