Bloomberg Law
Aug. 19, 2022, 7:51 PM

FTX US, Four Others Ordered to Correct FDIC Insurance Claims (1)

Allyson Versprille
Allyson Versprille
Bloomberg News

The Federal Deposit Insurance Corporation issued letters to five companies, including crypto exchange FTX US, demanding that they take immediate steps to correct “false or misleading statements” about certain products being eligible for insurance protection.

The action shows the US agency is ramping up its efforts to crack down on businesses, particularly in the digital asset space, that it determines aren’t being transparent with customers. It has said inaccurate representations about FDIC insurance can create confusion and harm consumers.

The latest cease-and-desist letters come after FDIC and the Federal Reserve took a similar step against bankrupt crypto platform Voyager ...