• Press Releases
    • Submit a press release
    • Read All
  • Contact us
Advertise
Bitcoinist.com
Join Lightchain AI
No Result
View All Result
👆 BUY LIGHTCHAIN HERE 👆
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
    • Price
      • Bitcoin Price
      • Ethereum Price
      • Binance Coin Price
      • Litecoin Price
  • Industry
    • Industry News
    • Press Releases
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • How to do Crypto Gambling
      • Crypto Casinos
        • Ethereum Casinos
        • Solana Casinos
        • LiteCoin Casinos
        • DogeCoin Casinos
        • Live Crypto Casinos
        • New Casinos
        • Instant Withdrawal Casinos
        • Cash App Casinos
        • No KYC Casinos
        • VPN Casinos
        • Offshore Casinos
          • Crypto Casinos IT
          • Crypto Casinos ES
            • All Guides
          • Crypto Casinos JP
          • Crypto Casinos SG
          • Crypto Casinos MY
          • Crypto Casinos KR
          • No GAMSTOP Casinos in UK
          • No Cruks Casinos NL
      • Crypto Betting
        • No ID sportsbooks
    • Play Crypto Games
      • Crypto Poker
      • Crypto Slots
      • Crypto Blackjack
      • Crypto Crash Gambling
        • Aviator Sites
      • Plinko
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Bitcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
  • Events
  • Play Games
Breaking News: Ripple And SEC Reach Major Deal: Remaining $75M Penalty Returned, Injunction Lifted
👆 BUY LIGHTCHAIN HERE 👆
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
    • Price
      • Bitcoin Price
      • Ethereum Price
      • Binance Coin Price
      • Litecoin Price
  • Industry
    • Industry News
    • Press Releases
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • How to do Crypto Gambling
      • Crypto Casinos
        • Ethereum Casinos
        • Solana Casinos
        • LiteCoin Casinos
        • DogeCoin Casinos
        • Live Crypto Casinos
        • New Casinos
        • Instant Withdrawal Casinos
        • Cash App Casinos
        • No KYC Casinos
        • VPN Casinos
        • Offshore Casinos
          • Crypto Casinos IT
          • Crypto Casinos ES
            • All Guides
          • Crypto Casinos JP
          • Crypto Casinos SG
          • Crypto Casinos MY
          • Crypto Casinos KR
          • No GAMSTOP Casinos in UK
          • No Cruks Casinos NL
      • Crypto Betting
        • No ID sportsbooks
    • Play Crypto Games
      • Crypto Poker
      • Crypto Slots
      • Crypto Blackjack
      • Crypto Crash Gambling
        • Aviator Sites
      • Plinko
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Bitcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
  • Events
  • Play Games
Bitcoinist.com
No Result
View All Result
Breaking News: Ripple And SEC Reach Major Deal: Remaining $75M Penalty Returned, Injunction Lifted
FTX

FTX Is Spreading False Statements About Crypto Products, FDIC Says

Christian Encila
by Christian Encila
3 years ago
·
Posted in Crypto News
Trusted Editorial content, reviewed by leading industry experts and seasoned editors. Ad Disclosure

FTX US received a cease-and-desist warning from the United States Federal Deposit Insurance Corporation on Friday, telling the crypto exchange to stop issuing “false” statements and “misleading” consumers about the insurance status of their products.

Four other crypto companies were given the warning by the FDIC. These are: SmartAsset.com, Cryptonews.com, Cryptosec.info, and FDICCrypto.com. The regulator claims that these companies misled consumers on the FDIC’s coverage of certain cryptocurrency-related commodities.

FDIC noted in a press statement that:

“As per evidence gathered by the FDIC, each of these companies made misleading claims, including on their websites and social media profiles, that certain crypto-related products or stocks held in brokerage accounts are FDIC-insured.”

Related Reading: Crypto New Casualty – Hodlnaut Sacks 80% Of Personnel Due To Liquidity Crisis

FTX Crossed The Line?

According to a letter delivered by the FDIC to FTX US, the crypto exchange’s president Brett Harrison “crossed the line” with a tweet made on July 20:

“Direct employer deposits to FTX US are held in FDIC-insured bank accounts in the users’ names,” and “stocks are held in FDIC-insured and SIPC-insured brokerage accounts.”

Sam Bankman-Fried. Image: NDTV.com

Sam Bankman-Fried, a crypto billionaire, owns FTX.US, a U.S.-based cryptocurrency exchange. The exchange is headquartered in the Bahamas and has mostly concentrated on expanding its operations beyond the United States.

Per the FDIC’s instruction I deleted the tweet. The tweet was written in response to questions raised on twitter regarding whether direct USD deposits from employers were held at insured banks (i.e. Evolve Bank).

— Brett Harrison (@Brett_FTX) August 19, 2022

The FDIC asserts that FTX US and its affiliated organizations may have violated FDIC laws by making “directly or indirectly false and misleading claims concerning FTX US’s deposit insurance status.”

The FDIC has made it clear that it does not offer any sort of insurance, protection, or brokerage account, and that it does not cover stocks or cryptocurrencies.

Related Reading: Porn Download Cost ‘World’s Most Hated Executive’ $450,000 In Crypto

Possible Legal Action Vs. FTX

Therefore, the information being propagated by FTX US is completely incorrect, and legal action might be taken against the cryptocurrency exchange for misrepresenting the FDIC’s name.

Harrison tweeted on Friday in reaction to the FDIC’s warning:

“We did not want to mislead anyone, and we did not imply that FTX US or crypto/non-fiat assets are covered by FDIC insurance.”

The regulator has been outspoken about the lack of insurance coverage for non-bank organizations, such as crypto-focused enterprises.

FDIC issued a notification in July instructing U.S. banks that they must examine and manage risks associated with developing third-party agreements with crypto service providers.

The agency reaffirmed that while insured bank deposits are covered against default for up to $250,000, there is no equivalent protection for crypto companies.

BTC total market cap at $384 billion on the daily chart | Source: TradingView.com

Featured image from Blue Diamond Gallery, Chart from TradingView.com
Editorial Process for bitcoinist is centered on delivering thoroughly researched, accurate, and unbiased content. We uphold strict sourcing standards, and each page undergoes diligent review by our team of top technology experts and seasoned editors. This process ensures the integrity, relevance, and value of our content for our readers.
ShareTweetShareShare

Sign Up for Our Newsletter!

For updates and exclusive offers enter your email.

I consent to my submitted data being collected and stored.
Christian Encila

Christian Encila

Follow

Christian, a journalist and editor with leadership roles in Philippine and Canadian media, is fueled by his love for writing and cryptocurrency. Off-screen, he's a cook and cinephile who's constantly intrigued by the size of the universe.

Full Profile

Related Posts

Tron, XRP, and Doge Are Surging – Meet the 3 Best Altcoins to Watch Next

Tron, XRP, and Doge Are Surging – Meet the 3 Best Altcoins to Watch Next

39 minutes ago
OpenAI Introduces HealthBench to Test AI Health Capabilities. Are AI Cryptos like $MIND Pumping Again?

OpenAI Introduces HealthBench to Test AI Health Capabilities. Are AI Cryptos like $MIND Pumping Again?

3 hours ago
Coinbase

Coinbase’s $2.9 Billion Deribit Purchase Sparks Interest In Future Acquisitions, Says CEO

5 hours ago
Crypto, coinbase, Memecoins, Bitcoin, stablecoin

US Senators Working To Revive Failed Stablecoin Bill With Bipartisan Push – Report

6 hours ago
Bitcoin Is King, But Don’t Ignore the Others, Bitwise CIO Suggest Diversified Crypto Exposure

Bitcoin Is King, But Don’t Ignore the Others: Bitwise CIO Suggest Diversified Crypto Exposure

9 hours ago
Solaxy Presale Explodes by Almost $1M in Two Days, Becomes the Best Presale to Buy Ahead of Altcoin Rally

Solaxy Presale Explodes by Almost $1M in Two Days, Becomes the Best Presale to Buy Ahead of Altcoin Rally

1 day ago
Please login to join discussion

Premium Sponsors

Press Releases

  • XRP Holders Make $9,277/Day with Bitcoin Cloud Mining

    23 minutes ago
  • CoinACE Throws Open the Doors to Risk‑Free...

    1 hour ago
  • STAU Foundation Announces Official Listing of Digital Gold...

    1 hour ago
  • Ripple (XRP) holders earn $78,597 per day through ALL4...

    2 hours ago
  • HODL 2025 opens in Dubai, advancing the Emirates’...

    4 hours ago

Bitcoin news portal providing breaking news, guides, price analysis about decentralized digital money & blockchain technology.

Join Lightchain AI

Bitcoin

  • News
  • Price
  • Businesses
  • Acceptance
  • Technology
  • Investment
  • Regulation
  • Reviews

Altcoins

  • News
  • Price
  • Ethereum
  • Ripple
  • Litecoin
  • EOS

Categories

  • Blockchain
  • Security
  • FinTech
  • Technology
  • Trending
  • Breaking News
  • Press Releases
  • How to

About Us

  • Advertise
  • Contact us
  • Editorial Policy
  • Privacy Policy
© 2025 Bitcoinist.com. All Rights Reserved.
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
    • Price
      • Bitcoin Price
      • Ethereum Price
      • Binance Coin Price
      • Litecoin Price
  • Industry
    • Industry News
    • Press Releases
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • How to do Crypto Gambling
      • Crypto Casinos
      • Crypto Betting
    • Play Crypto Games
      • Crypto Poker
      • Crypto Slots
      • Crypto Blackjack
      • Crypto Crash Gambling
      • Plinko
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Bitcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
  • Events
  • Play Games
Advertise

© 2025 Bitcoinist. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.