WASHINGTON — In a brazen attempt to dupe investors, Unbanked, Inc. of Alpharetta, Georgia has been ordered to cease and desist from making false and misleading statements about FDIC deposit insurance. The Federal Deposit Insurance Corporation (FDIC) has had enough of the company’s deception.
The FDIC launched an investigation after evidence was collected showing Unbanked made false representations on its website, in promotional materials, and on social media platforms stating or suggesting its crypto-related products and services are FDIC-insured. These claims included claims that Unbanked offered FDIC-insured ‘crypto accounts,’ without any disclaimer that cryptocurrency is not FDIC-insured or guaranteed.
Unbanked’s statements appear represent or imply that FDIC insurance is available for cryptocurrency, and that FDIC insurance would protect against cryptocurrency-related losses. However, the FDIC only insures deposits held in FDIC-insured financial institutions and only protects against losses caused by the failure of an FDIC-insured financial institution.
The Federal Deposit Insurance Act (FDI Act) prohibits any person from representing or implying that an uninsured product is FDIC-insured or from knowingly misrepresenting the extent and manner of deposit insurance. The FDI Act further prohibits companies from implying that their products are FDIC-insured by using ‘FDIC’ in the company’s name, advertisements, or other documents.
Unbanked’s actions are a clear attempt to deceive investors and exploit their trust. The FDIC is taking a firm stance against this type of deception, and Unbanked must immediately correct these statements and cease making false or misleading representations about deposit insurance.
The FDIC has issued a stern warning to Unbanked, Inc. and its officers: cease and desist from making false and misleading statements about FDIC deposit insurance. The FDIC will be closely monitoring the situation and taking action to protect investors and maintain the integrity of the financial system.
The FDIC’s actions send a clear message: those who attempt to deceive investors and exploit their trust will be held accountable. The public can trust that the FDIC is working tirelessly to protect their interests and maintain the integrity of the financial system.
Related Federal Cases
- John Dewey Morris, Insurance Scam, Valdosta GA, 2023 · Utah
- Corning Woman Caught in Disability Benefits Scam · New York
- Buffalo Social Worker Pleads Guilty to Insurance Scam · New York
- Mail Scam Masters Caught Red-Handed: Whittaker and Irby Face Five Years Behind Bars · Mississippi
- James Galanis Admits to Treasury Check Scam, Brockport NY, 2023 · California
Key Facts
- Agency: FDIC
- Category: White Collar Crime
- Source: Official Source â†â€â€ÂÂ
ðŸâ€ÂÂÂ’ Get the grimiest stories delivered weekly. Subscribe free →
Browse More
All Federal Districts →All Districts →
MORE FEDERAL CRIME NEWS
White Collar CrimeWhite Collar CrimeWhite Collar CrimeWhite Collar Crime