FDIC demands entities cease false deposit insurance claims

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.