Top Executives At FTX Respond To FDIC’s Allegations Of ‘False Statements’

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Regarding the claims, Bankman-Fried stated, "Clear communication is really important; sorry! FTX does not have FDIC insurance (and we’ve never said so on the website etc.); banks we work with do. We never meant otherwise, and apologize if anyone misinterpreted it.”

Top executives at one of the largest cryptocurrency exchanges, FTX, are responding to claims made by the Federal Deposit Insurance Corporation (FDIC) that they made false statements.

Sam Bankman-Fried, CEO of FTX, informed his 761,000 Twitter followers that only the banks they partner with have FDIC insurance and not the crypto exchange platform itself.

Keep in mind that the crypto exchange received a cease-and-desist order by the FDIC on Thursday, alleging that FTX was deceiving customers into thinking the products it offered were FDIC-insured.

Regarding the claims, Bankman-Fried stated, 

"Clear communication is really important; sorry! FTX does not have FDIC insurance (and we’ve never said so on the website etc.); banks we work with do. We never meant otherwise, and apologize if anyone misinterpreted it.”

He further stated that he has no objections to future collaboration with the FDIC on deposit insurance.

In his words, 

"We’re also excited to explore potential ways that individual accounts using direct deposit (which we now support) could, in the future, be used to further protect customers, and would be excited to work with the FDIC on that, but to be clear FTX US isn’t FDIC insured.”

Additionally, the FTX.US President, Brett Harrison, in response to the criticism from the FDIC, claims that his earlier statements were not meant to deceive investors. He further stated that he is carrying out the FDIC's directive to remove the tweets.

According to him, the tweet was written in response to questions raised on Twitter over if direct USD deposits from employers were held at insured banks (that is, Evolve Bank).”

He further expressed hope that their explanation clarifies their intentions while reiterating the company’s willingness to work directly with the FDIC on these important topics.

Written by
Chiagoziem Bede Ikwueze

Regarding the claims, Bankman-Fried stated, "Clear communication is really important; sorry! FTX does not have FDIC insurance (and we’ve never said so on the website etc.); banks we work with do. We never meant otherwise, and apologize if anyone misinterpreted it.”

Top executives at one of the largest cryptocurrency exchanges, FTX, are responding to claims made by the Federal Deposit Insurance Corporation (FDIC) that they made false statements.

Sam Bankman-Fried, CEO of FTX, informed his 761,000 Twitter followers that only the banks they partner with have FDIC insurance and not the crypto exchange platform itself.

Keep in mind that the crypto exchange received a cease-and-desist order by the FDIC on Thursday, alleging that FTX was deceiving customers into thinking the products it offered were FDIC-insured.

Regarding the claims, Bankman-Fried stated, 

"Clear communication is really important; sorry! FTX does not have FDIC insurance (and we’ve never said so on the website etc.); banks we work with do. We never meant otherwise, and apologize if anyone misinterpreted it.”

He further stated that he has no objections to future collaboration with the FDIC on deposit insurance.

In his words, 

"We’re also excited to explore potential ways that individual accounts using direct deposit (which we now support) could, in the future, be used to further protect customers, and would be excited to work with the FDIC on that, but to be clear FTX US isn’t FDIC insured.”

Additionally, the FTX.US President, Brett Harrison, in response to the criticism from the FDIC, claims that his earlier statements were not meant to deceive investors. He further stated that he is carrying out the FDIC's directive to remove the tweets.

According to him, the tweet was written in response to questions raised on Twitter over if direct USD deposits from employers were held at insured banks (that is, Evolve Bank).”

He further expressed hope that their explanation clarifies their intentions while reiterating the company’s willingness to work directly with the FDIC on these important topics.

Written by
Chiagoziem Bede Ikwueze