Major MLB partner sent cease and desist by FDIC for misleading customers

A major MLB partner sent a cease and desist by the FDIC for misleading fans that their products are FDIC-insured.

A major MLB partner, FTX US, sent a cease and desist by the FDIC for misleading fans that their products are FDIC-insured.

According to a report seen in the below tweet, “The Federal Deposit Insurance Corporation (FDIC) sent cease and desist notices to the FTX US crypto exchange and four websites that they allege are falsely claiming their products are FDIC-insured. Most people are familiar with FDIC insurance because it covers up to $250K per account with federally regulated banks, but crypto companies enjoy no such protections.”

MLB partnered with FTX in 2021 as “the first-ever partnership between a professional sports league and a cryptocurrency exchange” (according to MLB.com).

MLB partnership with FTX was exciting for many but FDIC letter is a red flag

Because of the nature of the partnership, several people were excited in 2021 upon the initial announcement.

MLB chief revenue officer Noah Garden told MLB.com in 2021, “This is an incredibly exciting announcement for everyone in Major League Baseball as we partner with a global leader in the early stages of their unbelievable growth. FTX quickly cultivated itself into a worldwide leader in the ever-evolving cryptocurrency industry and continues to build on its already impressive reputation. Our fans have been early adopters in using new technologies to engage with our game. We cannot wait to start collaborating with Sam and the entire FTX team.”

The league hasn’t released a statement regarding the situation yet, but the cease and desist is very recent and it’s likely just a matter of time until they do.

That being said, it’s never a good look when a high-profile partner of a sports league such as in this case gets wrapped up in something nasty like misleading customers in this type of manner.