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.”