The Federal Deposit Insurance Corporation (FDIC) warned OKX-affiliated US exchange OKCoin not to mislead customers.
In the crypto sector, the moves of regulators and various institutions continue. The lawsuits filed by the SEC, the pressures from the CFTC and finally the FDIC’s move marked the market.
The FDIC has targeted US OKCoin, the crypto exchange affiliated with OKX. The FDIC reported that OKCoin promotes uninsured deposits as if they were insured. The US insurance agency sent a warning letter to OKCoin.
FDIC Warns OKCoin
The Federal Deposit Insurance Corporation (FDIC) sent a letter to OKCoin CEO Hong Fang. In the letter, it was stated that OKCoin was in the wrong direction and a warning was given.
The letter from the FDIC pointed to three cases where the exchange made false claims. The US institution specifically targeted the rhetoric that OKCoin is licensed with FDIC insurance. Another issue was the HASH token on OKCoin. The FDIC stated that the rhetoric that this token has passed regulatory audits is false.
The FDIC holds the power to suspend and cancel services in the United States. In the FDIC’s letter, “Actually, OKCoin is not FDIC insured and the FDIC does not insure non-deposit products.” expression was noticed.
Conveying that it does not approve or support any blockchain projects, the FDIC stated that the implied insurance and licensing situations are not realistic.
An OKCoin spokesperson told Blockworks that the platform is aware of the incoming warning and is working to evaluate the FDIC’s statements.
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