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Press Release | March 27, 2023 |
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FDIC Demands Utoppia Inc. and Its Officers Cease Making False or Misleading Representations about Deposit Insurance in English and Spanish
WASHINGTON – The Federal Deposit Insurance Corporation (FDIC) issued a letter demanding Utoppia Inc. (Utoppia) and certain of its officers cease and desist from making false and misleading statements about FDIC deposit insurance and take immediate corrective action to address these false or misleading statements.
Based upon evidence collected by the FDIC, Utoppia and/or its officers made false representations in English and in Spanish, stating or suggesting that Utoppia is FDIC–insured, that FDIC insurance will protect customers’ cryptocurrency, and did not clearly and conspicuously identify an insured deposit institution for placement of deposits. These representations and material omissions are false and misleading.
FDIC Chairman Martin J. Gruenberg commented on an observed increase in these kinds of misrepresentations and their impacts on consumers. “These practices not only harm those who are targeted with the false promise of deposit insurance, but, if left unchecked, could also undermine confidence in the FDIC, FDIC-insured banks, and the U.S. banking system.”
The Federal Deposit Insurance Act (FDI Act) prohibits any person from representing or implying that an uninsured product is FDIC–insured or from knowingly misrepresenting the extent and manner of deposit insurance. The FDI Act further prohibits companies from implying that their products are FDIC–insured by using “FDIC” in the company’s name, advertisements, or other documents. The FDIC is authorized by the FDI Act to enforce this prohibition against any person.
FDIC deposit insurance protects customers in the unlikely event of the failure of an FDIC–insured bank. To determine if an institution is FDIC–insured, you can ask a representative of the institution, look for the FDIC sign at the institution, or use the FDIC’s BankFind tool. For general information about FDIC deposit insurance, read the following frequently asked questions. For more information about FDIC insurance and crypto companies, read the following fact sheet.
Attachment: Read the FDIC’s letter to Utoppia, Inc.
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MEDIA CONTACT:
Carroll Kim
carrkim@fdic.gov
FDIC: PR-24-2023
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