2 years ago
Cryptocurrency speech CEX.IO has received a cease-and-desist bid from the FDIC, arsenic seen successful a missive published by the U.S. regulator connected Feb. 15.
The Federal Deposit Insurance Corporation’s ineligible part said that CEX.IO has made mendacious oregon misleading statements suggesting that the FDIC insures it.
CEX.IO’s authoritative website claims that “U.S. dollars held successful your CEX.IO fiat currency wallet are FDIC-insured up to $250,000 per account” without qualification.
The FDIC, however, says that CEX.IO is itself not insured. It called the supra connection misleading due to the fact that it does not place immoderate insured deposit institutions (IDIs) with which CEX.IO has a nonstop oregon indirect relationship. Though CEX.IO whitethorn deposit funds with specified an institution, its users’ holdings are not needfully insured successful that way. As such, the FDIC has demanded that CEX.IO region each statements to that effect.
The regulator besides directed 2 autarkic websites — Captain Altcoin and Bankless Times — to close statements suggesting CEX.IO is FDIC-insured.
The FDIC besides said that 1 of those claims incorrectly implies that crypto assets tin beryllium federally insured. This ailment does not look to use to CEX.IO’s ain website, which has stated since astatine slightest 2021 that national security does not use to virtual assets.
CEX.IO is simply a comparatively insignificant exchange, with a 24-hour measurement of conscionable $4.3 million.
The FDIC has sent akin notices to different crypto companies. Last year, it sent cease and desist letters to FTX.US and Voyager Digital implicit their security guarantees.
The station FDIC tells CEX.IO to redact security promises appeared archetypal connected CryptoSlate.
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