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.

Why did FTX halt 'false and misleading' claims?

REUTERS/Dado Ruvic/Illustration/File Photo WASHINGTON, Aug 19 (Reuters) - A U.S. bank regulator ordered crypto exchange FTX on Friday to halt what it called "false and misleading" claims the exchange had made about whether funds at the company are insured by the government.

What is FTX exchange?

FTX Exchange was a leading centralized cryptocurrency exchange, the world's third-largest in July 2021, specializing in derivatives and leveraged products.

Can US residents trade through FTX US?

U.S. residents could only trade through FTX US. FTX was a centralized cryptocurrency exchange specializing in derivatives and leveraged products that filed for bankruptcy protection in the U.S. in November 2022. FTX's founder and former CEO was arrested in the Bahamas, extradited to the U.S. and released on a $250 bond in late December.