Binance’s American arm, Binance US, warned its users that their accounts are not insured by the FDIC.
According to the information provided by Decrypt, Binance US sent an e-mail to users today and updated the terms of use. “updated the expressions used regarding deposit insurance” told.
Binance US in 2019 An announcement that has now been removed from the site do and worth up to $250,000 He explained that the accounts were covered by FDIC insurance. Part of the announcement was as follows:
“All USD deposits are held in joint custody accounts at various banks insured by the FDIC. These joint custody accounts are managed to utilize the FDIC’s current insurance limit of $250,000.”
The U.S. government created the Federal Deposit Insurance Corporation (FDIC) during the Great Depression to protect American citizens’ deposits in case banks went bankrupt.
In the current terms of use of Binance US, “Your accounts and digital assets are not covered by the FDIC’s insurance protection.” The statement is included.
In addition, users from the platform direct US dollar will not be able to pull these, but first stablecoin or another cryptocurrency They will be able to convert and attract.
Federal Trade Commission, customer accounts Insured by the FDIC He blamed Stephen Ehrlich, the former CEO of cryptocurrency broker Voyager Digital, for making false statements.
The FTC shared an announcement last week to warn consumers:
“Know that the cryptocurrencies you deposit are not FDIC insured, that’s all. “If something happens, the government may not have an obligation to get involved and help you get your money back.”