Two top executives from FTX responded to FDIC’s recent allegations

While responding to the allegations from the Federal Deposit Insurance Corporation (FDIC), two top executives from the crypto exchange platform FTX said that the agency’s statements were “false.”

FTX Chief Executive Officer Sam Bankman-Fried took the matter to Twitter and told his 761K followers that the crypto exchange giant is not FDIC-insured and that only the banks they work with are.

https://twitter.com/SBF_FTX/status/1560703537126019072

FDIC recently issued a cease-and-desist order to FTX

Notably, the FDIC issued a shocking cease-and-desist order to FTX on August 18, claiming that the exchange was allegedly misleading users into believing that the offered products are FDIC-insured.

In addition, Bankman-Fried notes that he has no objections to future collaboration with the FDIC on deposit insurance. He 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.”

Furthermore, the exchange is open to investigating potential ways that individual direct deposit accounts might be used in the future to enhance customer protection, claims SBF. He added: 

“We would be excited to work with the FDIC on that, but to be clear, FTX US isn’t FDIC insured,” he cleared.

On the other hand, FTX.US President Brett Harrison also responded to criticism from the FDIC claims and said that his earlier statements were not meant to mislead investors. He further added that he is carrying out the FDIC’s order to remove the tweets.

https://twitter.com/Brett_FTX/status/1560701321983950848

Harrison clarified that the post was written in response to queries made on Twitter about whether direct USD contributions from employers were kept at insured institutions (i.e., Evolve Bank).

“We really didn’t mean to mislead anyone, and we didn’t suggest that FTX US itself, or that crypto/non-fiat assets, benefit from FDIC insurance. I hope this provides clarity on our intentions,” he stated.