Daily Management Review

U.S. watchdog demand that cryptocurrency platforms stop misleading consumers


08/22/2022


In a statement, the U.S. Federal Deposit Insurance Corporation (FDIC) urged the five biggest cryptocurrency platforms to avoid deceiving their users and all consumers.



© 2018 QuoteInspector.com
© 2018 QuoteInspector.com
The platform's inclusion of the corporation's acronym in the product names was the source of the company's resentment.

The FDIC notes that, based on information it gathered, FTX US, Cryptosec.info, SmartAsset, FDICCrypto, and Cryptonews.com made false claims that their particular cryptocurrency products, as well as certain stocks held in brokerage accounts, were insured by the Federal Deposit Insurance Corporation. These claims were made on their websites and on social media. One of these businesses, FDICCrypto.com, misleads customers by openly mentioning the abbreviation FDIC in its name.

The FDIC representatives emphasized that it is illegal for any person or legal entity to falsely claim that a product is covered by the Federal Deposit Insurance Corporation under US law. Additionally, because it misleads customers, it forbids businesses from using the FDIC abbreviation in their names or products.

source: cnn.com