多宝游戏下载 Demands Three Companies Cease Making False or Misleading Representations about Deposit Insurance
For Release
WASHINGTON 鈥 多宝游戏下载 (多宝游戏下载) issued letters demanding three companies and certain associated parties cease and desist from making false and misleading statements about 多宝游戏下载 deposit insurance. The 多宝游戏下载 is demanding that PrizePool, Inc. (PrizePool), AmeriStar, LLC (AmeriStar), and HighLine Gold, LLC (HighLine Gold) take immediate corrective action to address these false or misleading statements. In the case of AmeriStar and HighLine Gold, the 多宝游戏下载 has reason to believe these companies are related entities sharing several of the same principals and the same physical address, and therefore, issued a joint letter to them.
Based upon evidence collected by the 多宝游戏下载, these companies and certain associated parties made false representations by: (1) stating or suggesting they are 多宝游戏下载-insured or that certain uninsured financial products are insured by the 多宝游戏下载; (2) misusing the 多宝游戏下载 name or logo; (3) misrepresenting the nature or extent of deposit insurance; and/or (4) failing to clearly identify the insured depository institutions with which they have a relationship for the placement of customer deposits and into which funds may be deposited. The evidence suggests these misrepresentations are causing harm, or have the potential to cause harm, to consumers.
鈥淭he Federal Deposit Insurance Act prohibits any person from engaging in false advertising by misusing the name or logo of the 多宝游戏下载 or from making knowing misrepresentations about the existence of or the extent or manner of deposit insurance,鈥 said 多宝游戏下载 Chairman Martin J. Gruenberg. 鈥淐ombatting misrepresentations about deposit insurance coverage goes to the heart of the 多宝游戏下载's mission of maintaining stability and public confidence in the nation's banking system鈥.
The FDI Act prohibits any person from representing or implying that an uninsured financial product is 多宝游戏下载鈥搃nsured or from knowingly misrepresenting the extent and manner of deposit insurance. The FDI Act further prohibits companies from implying that they are 多宝游戏下载-insured or that their products are 多宝游戏下载鈥搃nsured by using 鈥湺啾τ蜗废略剽 in the company's name, advertisements, or other documents. The 多宝游戏下载 is authorized by the FDI Act to enforce this prohibition against any person.
On December 20, 2023, the 多宝游戏下载 Board of Directors adopted a final rule to amend part 328 of its regulations, which updates the 多宝游戏下载's regulations regarding false advertising, misrepresentations of deposit insurance coverage, and misuse of the 多宝游戏下载's name and logo. For example, the final rule clarifies that 多宝游戏下载鈥揳ssociated terms or images may not be used in marketing and advertising materials to inaccurately imply or represent that any uninsured financial product or non鈥揵ank entity is insured or guaranteed by the 多宝游戏下载.
多宝游戏下载 deposit insurance protects customers in the unlikely event of the failure of an insured depository institution. To determine if an institution is 多宝游戏下载鈥搃nsured, you can ask a representative of the institution, look for the 多宝游戏下载 sign at the institution, or use the 多宝游戏下载's tool. For general information about 多宝游戏下载 deposit insurance, read the following frequently asked questions. For more information about 多宝游戏下载 insurance and digital asset companies, read the following fact sheet.