Home Regulation FDIC tells CEX.IO to redact insurance promises

FDIC tells CEX.IO to redact insurance promises

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Cryptocurrency exchange CEX.IO has received a cease and desist order from the FDIC, as seen in a letter issued by the US regulator. February 15th.

The Federal Deposit Insurance Corporation’s legal department said CEX.IO made false or misleading statements suggesting the FDIC was insured.

CEX.IO’s official website unconditionally claims that “US dollars held in CEX.IO fiat wallets are insured by the FDIC up to $250,000 per account.”

However, the FDIC said CEX.IO itself is not insured. The above statement is called misleading as it does not identify the Insured Depository Institutions (IDIs) with which CEX.IO has a direct or indirect relationship. Although CEX.IO may deposit funds with such institutions, the holdings of its users are not necessarily so guaranteed. You have requested that the statement be deleted.

The regulator also directed two independent websites, Captain Altcoin and Bankless Times, to amend statements that suggested CEX.IO was insured by the FDIC.

The FDIC also said one of these claims falsely suggested that crypto assets could be insured by the federal government. This complaint does not appear to apply to his website on CEX.IO itself. At least after 2021 That federal insurance does not cover virtual assets.

CEX.IO is a relatively minor exchange with a 24-hour trading volume of just $4.3 million.

The FDIC has sent similar notices to other cryptocurrency companies. Last year, the company sent a cease and desist letter to his FTX.US and Voyager Digital over insurance coverage.

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