FDIC Targets Crypto Exchange Over Deposit Insurance Deceptions

GRIMY TIMES EXCLUSIVE: The Federal Deposit Insurance Corporation (FDIC) has taken a hard-hitting stance against two entities, CEX.IO Corp. and Zera Financial, for making false and misleading statements about FDIC deposit insurance.

In a move aimed at protecting consumers from deceptive practices, the FDIC issued cease-and-desist orders demanding immediate corrective action. The agency also directed Captainaltcoin.com and Banklesstimes.com to remove similar fraudulent claims regarding CEX.IO’s FDIC-insured status.

According to the FDIC, these entities falsely represented that CEX.IO and Zera Financial were FDIC-insured, suggesting that their customers’ cryptocurrency would be protected by FDIC insurance. The representations are categorically false, as the FDIC only insures deposits in member banks, not cryptocurrency or non-bank financial services.

FDIC Chairman Martin J. Gruenberg emphasized the seriousness of such misrepresentations, stating, “These practices harm consumers and could undermine confidence in the FDIC, insured banks, and the U.S. banking system.” The FDIC reminded the public that they can verify an institution’s FDIC-insured status through the BankFind tool or by contacting the institution directly.

For more information on this story, visit FDIC’s letter to Zera Financial, FDIC’s letter to CEX.IO Corp., FDIC’s letter to Captainaltcoin.com, and FDIC’s letter to Banklesstimes.com.

Stay tuned for further developments as Grimy Times continues to bring you the latest in federal crime news.