US FDIC issues warning to major cryptocurrency exchange FTX for untrue insurance claims

The US Deposit Insurance Agency clarified that the exchange had nothing to do with them and was not insured by them. The allegations forced the exchange to remove its deposit insurance statements.

The US agency also remembered to clarify that no cryptocurrency exchange is insured with their fund. 

It also sent cease and desist letters to five cryptocurrency exchanges, including FTX US, as well as their directors and officers for "false and misleading statements about FDIC deposit insurance".

Other companies mentioned in the letter included cryptocurrency news platform Cryptonews.com, crypto blog Cryptosec.info, financial information platform SmartAsset and the website FDICCrypto.com, which was shut down at the time of publication.

And all simply because FTX US, the exchange's president Brett Harrison said in a tweet in July that: "direct deposits from employers on FTX US are held in FDIC insured bank accounts in the name of users" and "shares are held in FIDC and SPIC insured brokerage accounts".

The FDIC name has been used by cryptocurrency exchanges to build confidence in their services. But now the agency has taken on such blabbermouths, who have guaranteed people a 100 per cent return on their deposits in the event of a collapse.