There have been numerous claims from these firms that crypto currency and assets are FDIC and/or SIPC insured. This simply is not true. Here's the latest example... FTX’s money isn’t insured, FDIC says FTX is accused of making ‘false representations’ about FDIC insurance https://www.theverge.com/2022/8/20/...dic-sam-bankman-fried-crypto-cease-and-desist 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 that FTX and the funds invested by users are FDIC-insured when they’re really not. While not flagged in the FDIC’s letter, users have also pointed out another potentially misleading tweet from Harrison that says “cash associated with brokerage accounts is managed into FDIC-insured accounts” at FTX’s “partner bank.” Harrison has since issued a response to the FDIC’s letter, explaining that FTX “really didn’t mean to mislead anyone,” and claims FTX “didn’t suggest that FTX US itself, or that crypto/non-fiat assets, benefit from FDIC insurance.” FTX CEO and founder Bankman-Fried provided further clarification as well, stating that while “FTX does not have FDIC insurance,” the banks it does business with do. Bankman-Fried adds that it may “explore potential ways that individual accounts using direct deposit... could, in the future, be used to further protect customers,” and that FTX “would be excited to work with the FDIC on that.” As noted by the FDIC, the Federal Deposit Insurance Act (FDI Act) prohibits companies from ”implying that their products are FDIC–insured by using ‘FDIC’ in the company’s name, advertisements, or other documents.” The FDIC is giving FTX 15 days to provide confirmation that it has removed or corrected any alleged misrepresentations. In addition to FTX, the FDIC doled out cease-and-desist warnings to four other companies, including Cryptonews.com, Cryptosec.info, SmartAsset.com, and FDICCrypto.com. The FDIC declined to comment beyond the contents of its letter, and FTX didn’t immediately respond to The Verge’s request for comment. Like Robinhood, FTX has started offering both traditional stock and crypto trading options. In May, crypto billionaire Bankman-Fried disclosed a 7.6 percent stake in Robinhood, and he’s reportedly looking into purchasing the trading platform. Even with the so-called crypto winter driving several crypto companies to bankruptcy, FTX and Bankman-Fried’s crypto trading firm Alameda Research have somehow managed to stay afloat. Bankman-Fried has extended lines of credit to numerous struggling crypto firms to help them weather the uncertain economy, and told Reuters he has “a few billion” more for future bailouts. According to documents obtained by CNBC, FTX brought in $1.02 billion in revenue in 2021 and $270 million in the first quarter of 2022.
Makes sense. Cryptos are supposed to be anonymous and exist only in the virtual world. How can you expect the government to insure something that's not there? You can't have your cake and eat it too. On one hand, you want to keep it hidden from the government by keeping the currency anonymous and virtual and then on the other hand, when s*** hits the fan, you expect the government to come out to save you. Well the government doesn't know how much crypto you have or had...
Hilarious and true. I hope they are regulated and treated as normal securities aka digital gold. Bring cryptos into the fold. There are truly anonymous coins such as Monero which should be left untouched for reasons of freedom and technological development.
That's all fine and dandy but if you ever lose your Monero, they are gone forever unless you are or hire this guy:
This fuktard is worth 12 billion, is 30 years old, and promised to give it all away to benefit society. What have you ever done except for continually post messages on this forum with no substance?
%% He sounds about as helpful as a rattlesnake; except many rattlesnakes ''rattle a warning before a strike bite.'' Those snakes, after they got slapped with a ''cease + desist FDIC order said '' FTX does not have FDIC insurance but the banks we do business with do'' It's a clear case of intended deception + thus the FDIC cease + desist order. Looking on the bright side,[sarcasm], some actually do milk rattlesnakes for anti-venom FDIC + SEC should milk those clowns for all their worth.