Is your money at risk? FDIC says crypto exchange funds are uninsured. It has recently issued an advisory to the common people concerning their deposits that different agencies insure. FDIC clearly stated that it is not responsible for any type of assets losses by any nonbaking institution like crypto platforms. Â
Cryptocurrencies companies are not insured
The FDI Corporation released an advisory last Friday stating that different banks present in the United States are required to examine as well as manage their risk associated with any third-party, for example, crypto wallet or nonbanking units.
The FDIC added that the money deposits made by the common people with any banking institution are insured only up to 250,000 dollars. But, this thing does not apply to any crypto companies, wallet providers, or nonbaking units. Therefore, the customer’s funds on those platforms are vulnerable to bankruptcy or insolvency.
FAKE Claims by Crypto Platforms
The Corporation also told that several crypto exchanges had made false claims to their users that they were eligible for coverage. The agency assured its users that their money would be protected if the crypto company went under. As an investor or trader, you should keep this fact in mind when choosing an exchange platform for your use.
As per the reports, this US Corporation started ensuring customers deposited on different banks by the mid-1930s, with a covered loss of up to $250,000. Since then, FDIC has not reported any kind of financial losses on the deposits which have been transacted using any FDIC-insured banks.
FDIC Warning to Voyager
The Corporation also published a letter along with advisory on Thursday, issuing a joint statement along with FR saying the Voyager Digital company had made false claims on being an FDIC insured unit, which is misleading depositors.Â
Voyager is mainly a crypto exchange filed for bankruptcy after closing its user withdrawals. The FDIC said that this company used to advise common people to buy different cryptocurrencies or coins on their platform and had attracted them by making false and misleading claims of being an insured institution which is totally wrong.Â
What are your thoughts on FDIC advisory statements regarding money deposits, and as it says, crypto exchange funds are uninsured? Should people stop using exchanges to buy cryptocurrencies or have trust in huge crypto exchanges? Let us know in the comment below. And, if you found our content informative, do like and share it with your friends.
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