Beware: The companies that hold your crypto aren’t insured the way banks are

cnn ^ | 11/13/2022 | Jeanne Sahadi

[LegendHasIt]

I'd rather trust my dough to the Crypt Keeper:

Than any of these Crypto Keeper Ponzi schemers.

[catnipman]

“Don’t banks do the same thing? Isn’t that why they never have everyone’s money and why the phrase Bank Run exists? “

the difference is that your money is FDIC insured, so if the bank fails or steals your money, you’ll get it back ... plus, FDIC banks must meet a plethora of FedGov regs regarding reserves and what they can and cannot do in terms of loans and overall operation ... AND the FedGov routinely audits FDIC banks to make sure they’re meeting the requirements of their FDIC insurance ...

[EBH]

But there are a lot banks wrapped up in this crypto stuff too.

I agree with what someone said earlier.

[catnipman]

“But there are a lot banks wrapped up in this crypto stuff too.”

not really ...

“At least it’s not deeply integrated with our banking sector and, at this point, doesn’t pose broader threats to financial stability,” Yellen told Bloomberg.

https://www.coindesk.com/policy/2022/11/14/ftx-collapse-exposed-weaknesses-in-crypto-janet-yellen-says-report/