WASHINGTON – The Federal Deposit Insurance Corporation (FDIC) is demanding that Unbanked, Inc. (Unbanked) of Alpharetta, Ga., as well as certain of the company’s officers, cease and desist from making false and misleading statements about FDIC deposit insurance and to immediately correct these statements.
“Unbanked is a non-bank company that has represented banking relationships with two FDIC-insured banks,” the bank regulator said. “Based upon evidence collected by the FDIC, Unbanked made false representations on its website, in promotional materials, and on social media platforms stating or suggesting its crypto-related products and services are FDIC-insured. These representations included claims that Unbanked offered FDIC-insured “crypto accounts,” without any disclaimer that cryptocurrency is not FDIC-insured or guaranteed.”
As CUToday.info has reported, the FDIC has on earlier issued warnings to other companies making similar claims.
According to the FDIC, Unbanked’s statements appear represent or imply that FDIC insurance is available for cryptocurrency, and that FDIC insurance would protect against cryptocurrency-related losses.
Losses Not Covered
“In fact, FDIC insurance does not cover cryptocurrency or digital assets,” the FDIC said. “In addition, the FDIC only insures deposits held in FDIC-insured financial institutions and only protects against losses caused by the failure of an FDIC-insured financial institution.”
How to Get the Daily CU News Headlines In Your Inbox Each Day, 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