FTX’s money isn’t insured, FDIC says
by Emma Roth from The Verge - All Posts on (#62QMT)
FTX founder and CEO Sam Bankman-Fried. The Federal Deposit Insurance Corporation (FDIC) slapped the Sam Bankman-Fried-owned cryptocurrency exchange FTX with a cease-and-desist order over false and misleading statements" that suggest its assets are FDIC-insured. The FDIC doesn't cover stocks or crypto, and only safeguards funds held in insured bank accounts.
In a letter to the exchange, the FDIC points to a now-deleted tweet from FTX president Brett Harrison, which states direct deposits from employers to FTX US are stored in individually FDIC-insured bank accounts in the users' names." The referenced tweet also says that stocks are held in FDIC-insured and SIPC [Security Investor Protection Corporation]-insured brokerage accounts." The FDIC claims this falsely represents...