FDIC cracks down on misleading insurance claims by OKCoin
The US Federal Deposit Insurance Corp. (FDIC) issued a cease and desist letter to crypto exchange OKCoin over misleading statements regarding the exchange’s insurance status. In a letter dated June 15, the FDIC accused OKCoin and its senior executives of making false representations that certain crypto-related products were FDIC-insured. The agency has ordered OKCoin to remove these misleading claims from its website, social media accounts, marketing materials, mobile app, and other customer-facing publications within 15 business days. Moreover, OKCoin must provide written confirmation assuring the FDIC of their prompt compliance. You might also like: Ripple CTO says large XRP holdings does not make it centralized The FDIC’s deposit insurance is primarily intended to cover customers’ deposits in the event of a failure of an FDIC-insured bank, offering a protective embrace of up to $250,000. However, this comforting security blanket doesn’t stretc...