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Regulators have a weak case against FTX on deposit insurance

Published 08/26/2022, 01:05 PM
Updated 08/27/2022, 03:00 PM
Regulators have a weak case against FTX on deposit insurance

In a cease-and-desist letter to fast-growing crypto exchange FTX, the Federal Deposit Insurance Corporation (FDIC) shed light on a now-deleted tweet from the exchange’s president, Brett Harrison, and issued a stark warning over the company’s messaging.

Harrison’s original tweet said, “Direct deposits from employers to FTX US are stored in individually FDIC-insured bank accounts in the users’ names.” He added, “Stocks are held in FDIC-insured and SIPC [Security Investor Protection Corporation]-insured brokerage accounts.”

Toby Gilbert is the CEO of Coinweb.io, a cross-chain computation platform. He graduated from London’s Global University (UCL) before starting a career in the tech and telco spaces. He invested in and exited three telecommunications companies in Europe, Africa and Asia before joining Coinweb in 2018. He also co-founded the Blockfort and OnRamp DeFi projects.

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