OKCoin’s Fake Insurance Claims Draw the Ire of FDIC

The U.S. Federal Deposit Insurance Corporation (FDIC) has warned the OKCoin exchange over fake insurance claims on its advertising materials and social media.

In a letter to OKCoin CEO Hong Fang, FDIC’s assistant general counsel Seth Rosebrock accused the exchange of violating the Federal Deposit Insurance Act with the claims.

The FDIC identified three instances in which the digital asset exchange or its executives made misleading claims about customer protection. This includes a blog post detailing 10 reasons to use the exchange where it claims to be ‘licensed across the US with FDIC insurance on OKCoin accounts.’ The post has since been taken down.

In another blog post, the exchange makes similar claims about HASH, a digital asset listed on its platform. ‘Provenance Blockchain and its utility token HASH has received broad regulatory acceptance from the SEC, OCC, FED, and the FDIC,’ said the blog, which has also been taken down.