On August 19, 2022, the FDIC issued letters demanding five companies and their officers, directors, and employees cease and desist from making false and misleading statements about FDIC deposit insurance and take immediate corrective action to address these false or misleading statements. According to the FDIC, the companies made false representations—including on their websites and social media accounts—stating or suggesting that certain crypto–related products are FDIC–insured or that stocks held in brokerage accounts are FDIC–insured.
It can be recalled that the FDIC issued an advisory on July 29, 2022 regarding deposit insurance and dealing with crypto companies, which we wrote about in this article: FDIC’s Advisory to Institutions on Deposit Insurance and Crypto Companies.
The FDIC’s press release can be found here.