�౦��Ϸ����

For Release

WASHINGTON – �౦��Ϸ���� (�౦��Ϸ����) today issued letters demanding two entities, CEX.IO Corp. (a cryptocurrency exchange) and Zera Financial (a non-bank financial service provider) cease and desist from making false and misleading statements about �౦��Ϸ���� deposit insurance and take immediate corrective action to address these false or misleading statements. Additionally, the �౦��Ϸ���� directed two websites, Captainaltcoin.com and Banklesstimes.com, to remove similar false and misleading statements about the �౦��Ϸ����-insured status of CEX.IO.

Based upon evidence collected by the �౦��Ϸ����, these entities made false representations, stating or suggesting that CEX.IO and Zera Financial are �౦��Ϸ����–insured, that �౦��Ϸ���� insurance will protect customers’ cryptocurrency, or that that �౦��Ϸ����-insurance would protect customers in the event of Zera Financial’s failure. These representations are false and misleading.

�౦��Ϸ���� Chairman Martin J. Gruenberg commented on an observed increase in these kinds of misrepresentations and their impacts on consumers. “These practices not only harm those who are targeted with the false promise of deposit insurance, but, if left unchecked, could also undermine confidence in the �౦��Ϸ����, �౦��Ϸ����-insured banks, and the U.S. banking system.”

The Federal Deposit Insurance Act (FDI Act) prohibits any person from representing or implying that an uninsured product is �౦��Ϸ����–insured or from knowingly misrepresenting the extent and manner of deposit insurance. The FDI Act further prohibits companies from implying that their products are �౦��Ϸ����–insured by using “�౦��Ϸ����” in the company’s name, advertisements, or other documents. The �౦��Ϸ���� is authorized by the FDI Act to enforce this prohibition against any person.

�౦��Ϸ���� deposit insurance protects customers in the unlikely event of the failure of an �౦��Ϸ����–insured bank. To determine if an institution is �౦��Ϸ����–insured, you can ask a representative of the institution, look for the �౦��Ϸ���� sign at the institution, or use the �౦��Ϸ����’s tool. For general information about �౦��Ϸ���� deposit insurance, read the following frequently asked questions . For more information about �౦��Ϸ���� insurance and crypto companies, read the following fact sheet .

• Read the �౦��Ϸ����’s letter to Zera Financial
• Read the �౦��Ϸ����’s letter to CEX.IO Corp
• Read the �౦��Ϸ����’s letter to Captainaltcoin.com
• Read the �౦��Ϸ����’s letter to Banklesstimes.com