Deposits at non-bank entities, including cryptocurrency firms, are not FDIC-insured

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Last Updated on July 30, 2022 by Bitfinsider

According to the government agency, while deposits at insured banks were protected up to $250,000, no such protections applied to those at crypto companies.

The Federal Deposit Insurance Corporation (FDIC) of the United States has issued an advisory informing the public that it “does not insure assets issued by non-bank entities, such as crypto companies.”

The FDIC advised banks in the United States on Friday to assess and manage risks in third-party relationships with crypto firms. While deposits at insured banks were protected up to $250,000, no such protections applied “against the default, insolvency, or bankruptcy of any non-bank entity, including crypto custodians, exchanges, brokers, wallet providers, or other entities that appear to mimic banks,” according to the government agency.

The FDIC stated that “some crypto companies have misrepresented to consumers that crypto products are eligible for FDIC deposit insurance coverage or that customers are FDIC-insured if the crypto company fails.” “These types of statements are inaccurate and can lead to consumer confusion about deposit insurance and, in some cases, harm consumers.”


The advisory came after the FDIC’s enforcement division issued a letter on Thursday in which assistant general counsels Jason Gonzalez and Seth Rosebrock claimed crypto lender Voyager Digital made “false and misleading” statements about insured deposits. The legal team suggested that the FDIC would not insure either Voyager customers or funds deposited on the platform in the event of the company’s failure.


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Disclaimer: The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, legal, tax or other advice. Investing in or trading cryptocurrency or stocks comes with a risk of financial loss.


Hardware wallets are safe and secure devices that can be used offline. They keep your cryptocurrency offline, making it impossible for you to be hacked. To find out more on the leading hardware wallets, you may view our reviews here: Ledger & Trezor
Disclaimer: The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, legal, tax or other advice. Investing in or trading cryptocurrency or stocks comes with a risk of financial loss.

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