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FDIC demands CEX.io stop claiming it's FDIC-insured

The FDIC is continuing its recent crackdown on exchanges claiming they're protected by FDIC insurance, issuing a cease-and-desist to CEX.io. CEX.io, like several other crypto companies including Voyager, FTX US, and Gemini, made claims referring to FDIC insurance that suggested that customer funds might be protected from issues at the company in a similar way that banking customers are protected from bank failures.

Many of these companies have taken the (true) statement that the company's insured depository accounts at various banking institutions are FDIC insured and presented it to customers in a misleading way, and the FDIC wants them to cut it out. The FDIC also demanded websites who published statements like "Is CEX.io Safe? Yes, Cex.io is a safe crypto exchange. Actually, one of the safest on the market since they are FDIC insured..." take them down.

CEX.io is a London-based cryptocurrency exchange with comparatively low trading volume compared to its larger competitors like Binance or Coinbase.

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