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Yep, no argument that I should have checked the FDIC's bankfind tool, which I do make liberal use of now. I guess I just made the mistake of thinking that Gemin

Yep, no argument that I should have checked the FDIC's bankfind tool, which I do make liberal use of now. I guess I just made the mistake of thinking that Gemini wouldn't have been able to do this for so long if it were a scam, especially since they repeatedly claimed they were working with regulators. I'm also reasonably sure that the FDIC insurance stuff was more prominently displayed on their site, though I'm having trouble confirming that so maybe I'm just misremembering. And indeed, I have helped a few people avoid these scams now. When friends of mine ask me about investing in crypto now, I tell them "I think you should buy Treasury Bills directly from the government for safe short term stuff, and probably just find a good low cost index fund from a registered broker for longer term stuff".

radlad 4y ago
You're not crazy that it used to[1] be less clear what exactly FDIC insurance applied to. Originally: > Gemini is a U.S. company regulated by the New York Department of Financial Services. GUSD reserves are eligible for FDIC insurance up to $250,000 per user while custodied with State Street Bank and Trust.¹ Later: > Gemini is a U.S. company regulated as a limited purpose trust company by the New York State Department of Financial Services. Each GUSD corresponds to a U.S. dollar held by Gemini in accounts at U.S. FDIC-insured bank accounts and money market funds holding short-term U.S. treasury bonds and maintained at a custodian. The cash portion of these GUSD reserves may be eligible for FDIC “pass through” insurance for Gemini customers, in the event of the failure of a bank holding the U.S. dollar deposit portion of the GUSD reserves. [1] https://web.archive.org/web/20211201224824/https://www.gemini.com/dollar https://web.archive.org/web/20211201224824/https://www.gemin...

radlad 4y ago

You're not crazy that it used to[1] be less clear what exactly FDIC insurance applied to. Originally: > Gemini is a U.S. company regulated by the New York Department of Financial Services. GUSD reserves are eligible for FDIC insurance up to $250,000 per user while custodied with State Street Bank and Trust.¹ Later: > Gemini is a U.S. company regulated as a limited purpose trust company by the New York State Department of Financial Services. Each GUSD corresponds to a U.S. dollar held by Gemini in accounts at U.S. FDIC-insured bank accounts and money market funds holding short-term U.S. treasury bonds and maintained at a custodian. The cash portion of these GUSD reserves may be eligible for FDIC “pass through” insurance for Gemini customers, in the event of the failure of a bank holding the U.S. dollar deposit portion of the GUSD reserves. [1] https://web.archive.org/web/20211201224824/https://www.gemini.com/dollar https://web.archive.org/web/20211201224824/https://www.gemin...