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This has popped up before with other crypto exchanges. The core piece is that the bank that the crypto exchange uses is FDIC insured but not the direct crypto e

This has popped up before with other crypto exchanges. The core piece is that the bank that the crypto exchange uses is FDIC insured but not the direct crypto exchange. So, if the bank that the exchange uses goes under, then yes that money should be insured. However, if the exchange itself goes under you SOL. So technically this is accurate but very misleading. This is a complete nothing burger. They want Brett to remove a tweet (posted on his personal account by the way) and text on 3rd party sites FTX US does not control. Government regulation at its best.

LiquidSky 4y ago
>Government regulation at its best. Yes? Your own comment says this was a deliberate attempt to mislead people. This is exactly what regulation is meant to stop.
marshray 4y ago
> However, if the exchange itself goes under you SOL. Either your deposits are federally protected from failure of the institution, or not. It's as ridiculous as me telling my credit card issuers that their loans to me are federally protected because I have an FDIC bank account. Nobody's worried about some bank going under, we're worried about the risk of trusting our money with a crypto exchange when so many have been Ponzi schemes. Waving around the terms FDIC- and SIPC-insured in a way that implies that it means something to the end consumer is, IMHO, the sign of a scammer.