PRESS RELEASE | JANUARY 19, 2024

FDIC DEMANDS FIVE ENTITIES CEASE MAKING FALSE OR MISLEADING REPRESENTATIONS ABOUT DEPOSIT INSURANCE

WASHINGTON — The Federal Deposit Insurance Corporation (FDIC) today issued letters demanding five entities and certain associated parties cease and desist from making false and misleading statements about FDIC deposit insurance. The FDIC is demanding that Atmos Financial, PBC (Atmos); BybitcoinEx, Inc. (BybitcoinEx); ORGANO Payments, Inc. and its subsidiary OGPay (OGPay); Horizon Globex GmbH (Horizon), which operates Upstream Exchange; and Zil Money Corporation (Zil) take immediate corrective action to address these false or misleading statements.

Based upon evidence collected by the FDIC, the companies and certain associated parties made false representations by: (1) stating or suggesting that these entities are FDIC-insured or that certain uninsured financial products are insured by the FDIC; (2) misusing the FDIC name or logo; (3) misrepresenting the nature or extent of deposit insurance; and/or (4) failing to clearly identify the insured depository institutions with which they have a relationship for the placement of customer deposits and into which funds may be deposited. These material misrepresentations and omissions are false and misleading, and have the potential to harm consumers.

“Combatting misrepresentations about deposit insurance coverage goes to the heart of the FDIC’s mission of maintaining stability and public confidence in the nation’s banking system,” said FDIC Chairman Martin J. Gruenberg. “These practices can not only confuse and 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 financial product is FDIC–insured or from knowingly misrepresenting the extent and manner of deposit insurance. The FDI Act further prohibits companies from implying that they are FDIC-insured or 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.

On December 20, 2023, the FDIC Board of Directors adopted a final rule to amend part 328 of its regulations, which updates the FDIC’s regulations regarding false advertising, misrepresentations of deposit insurance coverage, and misuse of the FDIC’s name and logo. For example, the final rule clarifies that FDIC–associated terms or images may not be used in marketing and advertising materials to inaccurately imply or represent that any uninsured financial product or non–bank entity is insured or guaranteed by the FDIC.

FDIC deposit insurance protects customers in the unlikely event of the failure of an insured depository institution. 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 digital asset companies, read the following fact sheet.

ATTACHMENTS:

• The FDIC’s letter to Atmos Financial, PBC. (Atmos)
• The FDIC’s letter to BybitcoinEx, Inc. (BybitcoinEx)
• The FDIC’s letter to ORGANO Payments, Inc. and its subsidiary OGPay 
• The FDIC’s letter to Horizon Globex GmbH (Horizon), which operates Upstream Exchange
• The FDIC’s letter to Zil Money Corporation (Zil)

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MEDIA CONTACT:
Carroll Kim
carrkim@fdic.gov

PR-3-2024

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