The U.S. Federal Deposit Insurance Corporation (FDIC) has issued a cease-and-desist letter to CEX.IO, requiring the Naperville, Illinois-based cryptocurrency exchange to stop claiming that U.S. dollars held in its fiat wallets are subject to FDIC restrictions, CoinDesk reported. Insurance.

The agency said a section of CEX.IO's website incorrectly stated that "U.S. dollars held in CEX.IO fiat wallets are FDIC-insured up to a limit of $250,000 per account." statement of eligibility, clarification, or limitation, and did not identify an Insured Depository Institution (IDI) in connection with this statement.” The FDIC asked CEX.IO to remove any indication that the exchange is FDIC-insured and that any cryptocurrency funds it holds are Statements or references that are protected by FDIC insurance.