2 years ago
The U.S. Federal Deposit Insurance Corp. (FDIC) has issued a cease and desist missive to OKCoin, informing the speech astir misleading statements regarding its security status.
In a June 15 letter, the FDIC alleged that the speech and its elder executives made mendacious representations stating oregon suggesting that definite crypto-related products were FDIC-insured.
The bureau ordered the speech to region these claims from its website, societal media accounts, selling materials, mobile app, and immoderate different customer-facing work wrong 15 concern days and supply written confirmation of compliance.
FDIC deposit security protects customers by providing sum for their deposits successful the improbable lawsuit of the nonaccomplishment of an FDIC-insured bank. The national bureau insures customers’ deposits of up to $250,000 successful registered banks, providing a information nett successful lawsuit of slope failures. However, it does not screen integer assets deposits.
FDIC cites instances of misrepresentation
The bureau cited 3 instances of misleading statements made by OKCoin concerning its security status. These included a blog station advertisement wherever the speech claimed it was licensed crossed the U.S. and its accounts had FDIC insurance.
Another lawsuit cited by the regulator progressive the exchange’s connection that the Provenance Blockchain, and its HASH inferior token, which is disposable from OKCoin, person received regulatory support from SEC, OCC, FED, and the FDIC.
In the 3rd instance, OKCoin’s Chief Marketing Officer tweeted that OKCoin offers FDIC security connected USD deposits.
According to the FDIC, these statements incorporate mendacious and misleading representations regarding FDIC deposit security and could mislead customers.
“OKCoin is not FDIC-insured and the FDIC does not insure non-deposit products. By not distinguishing betwixt U.S.-dollar deposits and crypto assets, the statements connote FDIC security sum applies to each lawsuit funds (including crypto assets). In addition, the FDIC does not insure oregon endorse peculiar blockchains.”
As of property time, OKCoin has not yet responded to CryptoSlate’s petition for comment.
In 2022, the FDIC issued akin notices to FTX.US and Voyager Digital.
The station FDIC orders OKCoin to close misleading security claims appeared archetypal connected CryptoSlate.
English (US) 