FTX backtracks on FDIC insurance but fails to delete all references FTX backtracks on FDIC insurance but fails to delete all references
FTX President Brett Harrison deleted a tweet referencing FDIC insurance yet missed another reference as SBF gets involved
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Updated: Aug. 20, 2022 at 12:05 am UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
Following the demands from the FDIC for FTX to cease making misleading statements about FDIC insurance, FTX CEO Sam Bankman-Fried took to Twitter to undertake crisis management. SBF stated that the message was “getting garbled” regarding actions taken by FTX to distance itself from protocols that may not comply with U.S. sanctions.
To be clear–this is getting garbled. We are constantly monitoring transactions for AML compliance, and do enhanced due diligence on certain transactions, but that does not mean that any accounts were frozen. https://t.co/FVOGHUa4TJ
— SBF (@SBF_FTX) August 19, 2022
Confusion arose as FTX allegedly froze a user’s account for interacting with the Aztec Network, seemingly believing the protocol could be a target for OFAC. SBF’s remarks were made on a busy night for FTX after company President Brett Harrison deleted a tweet under FDIC instruction. Harrison further stated that FTX “didn’t mean to mislead anyone.”
Per the FDIC’s instruction I deleted the tweet. The tweet was written in response to questions raised on twitter regarding whether direct USD deposits from employers were held at insured banks (i.e. Evolve Bank).
— Brett Harrison (@Brett_FTX) August 19, 2022
However, Harrison did not delete all FDIC insurance references, as the tweet below reveals. Whether the tweet was intentionally left or simply missed by the FDIC and FTX is unclear.
This is a developing story; this article will be updated as appropriate.
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Liam 'Akiba' Wright
Also known as "Akiba," Liam Wright is a reporter, podcast producer, and Editor-in-Chief at CryptoSlate. He believes that decentralized technology has the potential to make widespread positive change.
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FTX is a cryptocurrency derivatives exchange that offers futures, leveraged tokens and OTC trading.
FTX
FTX is a defunct cryptocurrency exchange, currently in bankruptcy proceedings, that was founded by Sam Bankman-Fried and Zixiao “Gary” Wang in May 2019.
Sam Bankman-Fried is the former CEO, and co-founder of defunct crypto exchange FTX and Alameda Research.
Brett Harrison is the former President of FTX US, a US-regulated cryptocurrency exchange.