FDIC orders crypto exchange FTX to address 'false and misleading' claims

The Federal Deposit Insurance Corporation has ordered FTX, the cryptocurrency exchange owned by billionaire investor Sam Bankman-Fried, to address its "false and misleading" statements it made about the company's funds being FDIC-insured.The government agency specifically pointed to FTX President Brett Harrison's Twitter post on July 20, saying "direct deposits from employers to FTX US are stored in individually FDIC-insured bank accounts in the users' names," and "stocks are held in FDIC-insured and SIPC-insured brokerage account."Meanwhile, FTX US, the American division of FTX, is not insured by the FDIC, the FDIC doesn't insure any brokerage accounts and FDIC insurance doesn't cover stocks or crypto, the banking regulator wrote in a letter to FTX.In July, FTX was reportedly in talks to buy crypto exchange Bithumb.