What's behind the FTX US cease-and-desist order?

Explore the policy fallout from the 2022 market crash, the advance of CBDCs and more. The U.S. Federal Deposit Insurance Corp. (FDIC) published five cease-and-desist orders Friday, including one to crypto exchange FTX US, alleging they mislead investors by suggesting their accounts are insured through the government agency.

Is FTX a FDIC-insured cryptocurrency exchange?

FTX.US is a U.S. cryptocurrency exchange owned by FTX, which is based in the Bahamas and has been largely focused on building its business outside of the U.S. The FDIC also said that the websites for SmartAsset and CryptoSec identify FTX as an ”‘FDIC-insured’ cryptocurrency exchange.”

Is ftx'misleading' consumers about insurance status?

FTX, the crypto exchange controlled by Sam Bankman-Fried, received a cease-and-desist warning on Friday from the Federal Deposit Insurance Corporation, telling the company to stop “misleading” consumers about the insurance status of their funds. The FDIC issued letters to five crypto companies, including FTX US.

Is FTX US protected by the FDIC?

The FDIC issued letters to five crypto companies, including FTX US. Unlike deposits held at U.S. banks, cryptocurrencies stored with brokerages are not protected by the government.