Deposits at non-bank entities, including crypto firms, are not insured — FDIC

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Deposits at non-bank entities, including crypto firms, are not insured — FDIC
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Beware, crypto investors, the US FDIC won't protect your deposits.

“Customer confusion can lead to legal risks for banks if a crypto company, or other third-party partner of an insured bank with whom they are dealing, makes misrepresentations about the nature and scope of deposit insurance.

Moreover, misrepresentations and customer confusion could cause concerned consumers with insured-bank relationships to move funds, which could result in liquidity risk to banks and in turn, could potentially result in earnings and capital risks.”The FDIC began insuring deposits in 1934, first starting with up to $2,500 in coverage. Since that time, the government agency reported no depositor “lost a penny” in an FDIC-insured bank, despite more than 9,000 such institutions failing before 1940.

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