2 years ago
OKCoin indispensable scrub misleading statements that suggest its customers’ accounts are protected by the U.S. Federal Deposit Insurance Corp. (FDIC), the U.S. banking regulator ordered precocious Thursday, complaining the institution is making mendacious claims.
The FDIC has demanded OKCoin USA Inc., the San Francisco-based sister speech to OKX, region immoderate offending claims from its tract instantly oregon look a imaginable enforcement enactment for violating U.S. banking law, the FDIC said successful its letter to CEO Hong Fang. It’s the latest of respective specified warnings to crypto firms from the banking watchdog.
“OKCoin is not FDIC-insured and the FDIC does not insure non-deposit products,” the bureau said successful its cease-and-desist demand. “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).”
The bureau cited 3 examples of “false and misleading representations,” including a notation connected its website that the Provenance Blockchain’s HASH token connected OKCoin had “received wide regulatory acceptance from the SEC, OCC, FED, and the FDIC” and a 2020 posting to the company’s website, wherever it advertised itself arsenic “Licensed crossed the US with FDIC security connected OKCoin accounts.” It besides cited a institution official’s Twitter station that “if you are successful the US we connection FDIC security connected USD deposits.”
A petition for remark sent to the CEO precocious Thursday wasn’t instantly answered.
The regulator antecedently sent similar orders to now-bankrupt Voyager Digital and to FTX.US, aft then-CEO Brett Harrison suggested successful a tweet that the institution was covered by the regulator. The FDIC had besides issued a broader warning to the crypto sector, saying FDIC protections absorption lone connected banks, not crypto firms that person FDIC-insured slope accounts.
English (US) 