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The Federal Deposit Insurance Corporation (FDIC) is the insurer of the deposits for depository institutions. Non-financial companies are prohibited from representing that an uninsured product is FDIC insured, or using FDIC in the company’s name, advertisements, or other disclosures. Cryptocurrency deposits are also not covered by the FDIC. The recent implosion of cryptocurrency firm FTX Trading Ltd. covered in this article, Crypto Coverage after FTX Fall: Crime and Custody Coverage, provides key analysis on the potential cryptocurrency exposure and the applicability of FDIC and traditional insurance policies.
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