WASHINGTON – The Federal Deposit Insurance Corporation (FDIC) has issued a warning letter to cryptocurrency provider Utoppia demanding that it and its officers cease and desist from making false and misleading statements about FDIC deposit insurance.
The agency called on the company to take immediate corrective action to address these "false or misleading" statements.
According to the FDIC, it has collected information showing Utoppia and/or its officers have made false representations in English and in Spanish stating or suggesting that Utoppia is FDIC–insured and that FDIC insurance will protect customers’ cryptocurrency.
Not Clear or Conspicuous
The company did not “clearly and conspicuously” identify an insured deposit institution for placement of deposits, the FDIC said, adding the representations and material omissions are “false and misleading.”
As CUToday.info has reported, a number of other companies and fintechs have claimed or suggested they carry FDIC deposit insurance, when they do not.
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