San Francisco, Aug 20 : The US Federal Deposit Insurance Corporation (FDIC) has issued cease-and deter letters to five cryptocurrency companies, including the world’s most popular cryptocurrency exchange FTX in the wake of “false and false statements”.In addition to FTX, Cryptonews.com, Cryptosec.info, SmartAsset.com, and FDICCrypto.com received cease-and-desist notices on Friday with agencies giving them 15 days in which to eliminate the “false and false statements” from their websites and social media accounts.
The FDIC also mentioned a later-deleted tweet FTX CEO Brett Harrison sent on July 20th, which reads “direct payments from employers to FTX US are held in individual FDIC-insured bank accounts in the names of the users”.
In response to the letter Harrison responded on Twitter on Friday that “we really didn’t intend to deceive anyone.”
“We did not suggest FTX the US as a whole, or even that non-fiat and crypto-based assets get FDIC insurance”, he claimed.
“Per the FDIC’s instructions, I have deleted the tweet.
The tweet was composed in response to a question asked on Twitter regarding directly USD deposit from employers was held in insured banks (i.e.Evolve Bank),” he said.
For FDICCrypto.com The agency stated that the owner of the site has registered the domain by the close of July, and redirecting users to another website which sells crypto-related products, according to Decrypt.
“The FDIC is demanding that the owner stop immediately making use of the domain’s name.” the US agency added.
“Given the risk-taking that is readily apparent in the crypto-asset market they are essential and appropriate steps to be taken,” an FDIC spokesperson was quoted as saying.
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