The FDIC issued a new letter demanding that a nonbank crypto entity cease making false or misleading representations about deposit insurance.

Details: The FDIC said Unbanked Inc. of Alpharetta, Ga., made false representations on its website, in promotional materials, and on social media platforms stating or suggesting its crypto-related products and services are FDIC-insured.

Background: The letter is the latest in a series of FDIC actions to prevent nonbanks from misleading consumers on deposit insurance. The agency last year issued:

  • A consumer fact sheet addressing misrepresentations and misconceptions about crypto and deposit insurance.

  • An advisory reminding banks dealing with crypto companies to confirm and monitor that these companies do not misrepresent deposit insurance.