The Federal Deposit Insurance Corporation (FDIC) published a Fact Sheet about FDIC Deposit Insurance and Crypto Companies in order to address some common and emerging misconceptions about deposit insurance coverage and its application.
Recently, some crypto companies have misrepresented to consumers that crypto products are eligible for FDIC deposit insurance coverage or that customers are FDIC-insured if the crypto company fails. These sorts of statements are inaccurate and can cause consumer confusion about deposit insurance and harm consumers under certain circumstances.
FDIC deposit insurance protects bank depositors in the unlikely event that an FDIC-insured bank fails. In such an event, the FDIC insures each bank depositor up to at least $250,000. However, deposit insurance does not apply upon the failure of a NON-BANK, such as a crypto company. In addition, deposit insurance does not protect consumers with non-deposit products such as stocks, bonds, mutual funds, securities, commodities, or crypto assets.
Click trst.in/XKD1Fd to read the full Fact Sheet. ... See MoreSee Less