FDIC Says Crypto Exchange FTX Made 'Misleading' Representations -- WSJ

Dow Jones2022-08-20

By Andrew Ackerman

 

The Federal Deposit Insurance Corp. ordered crypto exchange FTX on Friday to halt "false and misleading" representations related to claims that customer funds held at the company are protected by the nation's banking insurance system.

The order Friday from the U.S. regulator highlights what it characterized as a misleading Tweet in July from Brett Harrison, FTX's U.S. president, on the safety of direct deposits from U.S. employers to FTX, among other promises. Mr. Harris wrote on Twitter that "direct deposits from employers to FTX US are stored in individually FDIC-insured bank accounts in the users' names" and that "stocks are held in FDIC-insured and SIPC-insured brokerage accounts."

Similar letters were sent to four other firms, the FDIC said.

A representative of FTX didn't immediately respond to a request for comment but Mr. Harrison apologized on Twitter , saying he didn't mean to mislead anyone and deleted the July tweet in question.

FTX founder Sam Bankman-Fried also apologized on Twitter.

 

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$(END)$ Dow Jones Newswires

August 19, 2022 15:45 ET (19:45 GMT)

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