I’m guessing this isn’t a huge deal, they just have to stop saying either (a) false things about customer deposits being FDIC-insured, or (b) true statements about customer deposits being FDIC-insured without specifying which bank, both of which the FDIC seems to prohibit.
The Federal Deposit Insurance Corporation said a July tweet by Brett Harrison, head of FTX’s U.S. operations, contained misleading claims that funds held at and stocks purchased through FTX were FDIC insured, and ordered the company to remove any misleading language from its social media accounts and websites.
In the tweet, which Harrison has since deleted, he stated that direct deposits from employers to the crypto exchange are “stored in individually FDIC-insured bank accounts” and that stocks purchased via FTX US “are held in FDIC-insured” brokerage accounts. The FDIC said in its cease and desist letter to FTX US that those statements implied that FDIC insurance was available for cryptocurrency and stock holdings, and that the agency does not insure brokerage accounts.
In a tweet on Friday, FTX CEO Sam Bankman-Fried emphasized FTX is not FDIC-insured, and apologized if anyone misinterpreted previous comments.
FTX is in trouble with the FDIC: https://www.fdic.gov/news/press-releases/2022/ftx-harrison-letter.pdf
I’m guessing this isn’t a huge deal, they just have to stop saying either (a) false things about customer deposits being FDIC-insured, or (b) true statements about customer deposits being FDIC-insured without specifying which bank, both of which the FDIC seems to prohibit.
Here’s a news article on this: https://www.msn.com/en-ca/money/topstories/crypto-exchange-ftx-ordered-to-halt-false-and-misleading-claims-by-us-bank-regulator/ar-AA10QJdY
An excerpt: