WASHINGTON — The Federal Deposit Insurance Corp. issued a cease-and-desist order Friday to an Alpharetta, Ga.-based cryptocurrency nonbank known as Unbanked, Inc., saying that the firm made incorrect and deceptive statements when it suggested various crypto-related products it offers were covered by FDIC deposit insurance.

FDIC said the company's promotional materials on its website and social media account falsely suggested FDIC insurance encompasses cryptocurrency, and further implied the agency's insurance would protect Unbanked, Inc.'s investors against potential losses. While the FDIC noted Unbanked has advertised it holds partner-banking relationships with two actual FDIC-insured banks, the agency strictly prohibits conflating such partnerships with deposit insurance coverage, particularly over digital assets, which the agency has explicitly said it does not cover.

"FDIC insurance does not cover cryptocurrency or digital assets," the agency wrote in a press release announcing the action. "In addition, 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.

Read Full Story: https://news.google.com/rss/articles/CBMiY2h0dHBzOi8vd3d3LmFtZXJpY2FuYmFua2Vy...