The FDIC issued a new letter demanding that a nonbank crypto entity cease making false or misleading representations about deposit insurance.
FDIC issues new cease-and-desist letter on deposit insurance claims
August 07, 2023 / By ICBA
The FDIC issued a new letter demanding that a nonbank crypto entity cease making false or misleading representations about deposit insurance.
The FDIC issued a new letter demanding that a nonbank crypto entity cease making false or misleading representations about deposit insurance.
Details: The FDIC said Unbanked Inc. of Alpharetta, Ga., 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.
Background: The letter is the latest in a series of FDIC actions to prevent nonbanks from misleading consumers on deposit insurance. The agency last year issued:
A consumer fact sheet addressing misrepresentations and misconceptions about crypto and deposit insurance.
An advisory reminding banks dealing with crypto companies to confirm and monitor that these companies do not misrepresent deposit insurance.
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