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FDIC Hits FTX.US With Stop-and-Desist Letter

key takeaways

  • The FDIC says that FTX.US and its president, Brett Harrison, have made false claims concerning the alternate’s deposit insurance coverage standing.
  • The company has requested Harrison and FTX.US to stop and desist from making statements that suggest that FTX.US was FDIC-insured.
  • Harrison claims to have complied with the request expeditiously.

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The Federal Deposit Insurance coverage Company has referred to as on FTX.US President Brett Harrison to take away a tweet suggesting that FTX.US was FDIC-insured.

false and deceptive statements

FTX.US simply ran after a US regulator.

The Federal Deposit Insurance coverage Company (FDIC) introduced at the moment that 5 crypto firms had made false and deceptive statements concerning the standing of their deposit insurance coverage. Crypto alternate FTX.US and its president, Brett Harrison, have been named together with Cryptonews, CryptoSec, SmartAsset and an internet site referred to as

In accordance with the company, Harrison falsely claimed on Twitter that “direct deposits from employers to FTX.US have been saved in customers’ names in personally FDIC-insured financial institution accounts” and that the corporate’s inventory was “FDIC-insured and SPIC”. – Insured”. brokerage account. The company additionally criticized the corporate for figuring out as FDIC-insured on its web site.

The FDIC acknowledged that some FTX.US merchandise talked about by Harrison and the FTX.US web site weren’t truly uninsured, that deposits weren’t protected to the extent claimed, and that the FDIC’s identify was being misused.

The company requested Harrison and FTX.US to instantly take away all statements that explicitly or implicitly recommend that FTX.US was FDIC-insured. As well as it requested him to chorus from making additional such statements and to supply the FDIC with written affirmation and proof that he complied. Failure to take action would open the crypto alternate and Harrison to civil financial penalties.

Harrison responded to the letter by stating That “I deleted the tweet as directed by the FDIC” and that and FTX.US “did not actually imply to mislead anybody.” At press time, nonetheless, his Twitter account remains to be proven. Different Tweets that presumably indicated FTX.US was not directly insured by the FDIC.

Supply: Twitter

US regulatory companies have not too long ago been following up on crypto business leaders, most notably the Securities and Alternate Fee, which not too long ago launched an investigation into Coinbase for promoting unregistered securities and reportedly different main exchanges. is investigating.

Disclosure: On the time of writing, the writer of this text owns ETH and several other different cryptocurrencies.

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