FDIC Denies Money Insurance For Cryptocurrency Exchange CEX.IO

Key Points:

• The FDIC asked crypto exchange CEX.IO to stop claiming that U.S. dollars held in their fiat currency wallets are FDIC-insured.
• CEX.IO misled users by claiming U.S. Dollars held in their fiat currency wallets are FDIC-insured up to a limit of $250,000 per account.

The Federal Deposit Insurance Corporation (FDIC) has sent a cease-and-desist letter to CEX.IO instructing it to stop saying that U.S. dollars kept in its fiat currency wallets are FDIC-insured. CEX.IO is a cryptocurrency exchange located in Naperville, Illinois.

The organization said that a statement on CEX.IO’s website, “U.S. dollars held in your CEX.IO fiat currency wallet are FDIC-insured up to $250,000 per account” is false. No insured depository institution (IDI) or institutions are specified in conjunction with this statement, this organization pointed out in its letter, and neither are any qualifications, explanations, or limits expressed in connection with this assertion.

This organization also pointed out that other websites had incorrectly stated that the FDIC insured CEX.IO.

It has ordered CEX.IO to delete all representations and references that imply the exchange is FDIC-insured and that any cryptocurrency monies it holds are secured by this organization insurance.

CEX.IO is a regulated multi-function cryptocurrency exchange founded in 2013. This London-based crypto exchange supports over 200 digital currencies and tokens, including Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), Uniswap (UNI), and more.

Present in 99% of U.S. countries and 48 states, CEX.IO has built a global cryptocurrency exchange ecosystem serving over four million users.

The Federal Deposit Insurance Corporation is an independent agency created by Congress to maintain stability and public confidence in the nation’s financial system. This organization insures deposits; examines and supervises financial institutions for safety, soundness, and consumer protection; makes significant and complex financial institutions resolvable; and manages receiverships.

In July 2022, the FDIC called on banks serving crypto firms to ensure that customers know which of their funds will be covered by the government in the event of a crash, noting that it is concerned that customers Customers may be confused about the security of their assets.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your research before investing.

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