WASHINGTON – The Federal Deposit Insurance Corporation (FDIC) continues to crack down on non-banks that are either claiming or implying they have federal deposit insurance.
The FDIC has sent two letters demanding, respectively, that the cryptocurrency exchange CEX.IO and the non-bank financial service provider Zera Financial cease and desist from making false and misleading statements about FDIC deposit insurance and take immediate corrective action to address these false or misleading statements.
Additionally, the FDIC directed two websites, Captainaltcoin.com and Banklesstimes.com, to remove similar false and misleading statements about the FDIC-insured status of CEX.IO.
‘False Representations’
“Based upon evidence collected by the FDIC, these entities made false representations, stating or suggesting that CEX.IO and Zera Financial are FDIC–insured, that FDIC insurance will protect customers’ cryptocurrency, or that that FDIC-insurance would protect customers in the event of Zera Financial’s failure,” the FDIC said. “These representations are false and misleading.”
Just like NCUSIF insurance, the Federal Deposit Insurance Act (FDI Act) prohibits any person from representing or implying that an uninsured product is FDIC–insured or from knowingly misrepresenting the extent and manner of deposit insurance. The FDI Act further prohibits companies from implying that their products are FDIC–insured by using “FDIC” in the company’s name, advertisements, or other documents.
It’s Called Fresh for a Reason. And We Offer Home Delivery. For Free!
The biggest, best and freshest news reporting in credit unions remains free in ’23! Each morning CUToday.info delivers its daily Fresh Today news update offering the latest headlines and breaking news right to your email, with the easy-to-read headlines format allowing you to click on the stories that interest you most in order to learn more.
If you haven’t yet signed up for the new email solution on which CUToday.info has partnered with ResponseGenius, you can do so here. Signing up requires less than one minute of your time—and it’s free!
Please note that after signing up you may need to go to your Spam/Junk folder and mark the morning headlines email as safe. CUToday.info does not provide its list of readers and emails to outside parties, and we will not be contacting you to sell you an extended warranty or sending you any links so you may cash in on an inheritance you didn’t know was coming.
And did we mention it’s free?
Please note and/or make your IT department or email administrator aware the emails will be coming from the domains CUTodayinfo.com and CUTodayinfoReply.com