Federal Deposit Insurance Corporation has sent a letter addressing the OKCoin exchange. The FDIC has asked the crypto exchange to respond accordingly about the matter of making false claims regarding deposit insurance.
Thus far, FDIC has sent 3 letters to OKCoin. The firm is situated at the Bodega Importadora de Pallets and Money Avenue LLC. These letters were dispatched on Thursday containing a warning from the regulatory agency about falsified statements that can hurt the interests of its consumers.
The federal agency has continued to investigate incidents where many online entities and investors have misused its logo or name. At the same time, these shadowy figures have tried to impersonate or act as representatives of the FDIC. To this end, FDIC Chairperson Martin J. Gutenberg has addressed the issues concerning online fake posers and scammers.
He maintained that such practices have continued to confuse the consumers if they were dealing with a real insured enterprise or if they were insured under the deposit insurance laws.
FDIC officials have sent a legal notice to the OKCoin exchange about the illegal nature of their claims concerning being covered by the agency. The FDIC officials pointed out that the crypto exchange has posted on one of its sites that it was licensed across the US territory under FDIC on all accounts.
Meanwhile, the agency also pointed out another instance where the Chief Marketing Officer of FDIC Insurance maintained that an affiliate exchange was protected under the federal insurer.
OKCoin exchange has 15 days to confirm the compliance of the required orders to the FDIC letter. The FDIC has directed OKCoin to remove all statements from its online platforms claiming that it is covered under FDIC.
FDIC also claims that the firm has never covered a particular blockchain project furthermore the firm only offers insurance coverage to banks and saving associations up to $250K. FDIC published a fact sheet last year where it notified that the agency does not cover investment products such as bonds, stocks, commodities, and cryptocurrencies.
French Authorities Are Investigating Binance in Money Laundering Case
Speaking of crypto exchanges in trouble, Binance has added one more trouble to its list of regulatory battles. Recently, financial regulators of France are investigating Binance exchange in the matter of alleged money laundering accusations.
Reporting on the matter, local media outlet Le Monde informed that Binance was undergoing a preliminary investigation in Paris. The investigation is carried out by the financial judicial investigation service.
Binance is facing legal charges such as laundering, concealment, breaching KYC rules, violating PSAN licenses, and generating profits through illegal means. Binance has currently folded its operations in the Netherlands, Canada, and other European territories and it is also facing a lawsuit in the USA from SEC.
Binance spokesperson for France has responded that the firm has strived to abide by all local regulations. The spokesperson refrained from sharing details concerning the regulatory investigation and reassured that all the consumer funds are secure.
The spokesperson also maintained that it will release the required documentation when ordered by the government officials to aid when they issue a suitable receipt for issuance of the same.