The FDIC issued letters demanding five entities and certain associated parties cease and desist from making false and misleading statements about FDIC deposit insurance.

Details: The FDIC demanded that Atmos Financial PBC; BybitcoinEx Inc.; ORGANO Payments Inc. and its subsidiary OGPay; Horizon Globex GmbH, which operates Upstream Exchange; and Zil Money Corp. take immediate corrective action to address false or misleading statements.

Background: The letter is the latest in a series of FDIC actions to prevent nonbanks from misleading consumers on deposit insurance. In 2022, the agency 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.