FTX US Receives Cease and Desist Letter, but Revenue Up 1,000% YoY
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FTX US Receives Cease and Desist Letter, but Revenue Up 1,000% YoY

Created 5mo ago, last updated 5mo ago

FTX was on the receiving end of some bad and good news over the weekend.

FTX US Receives Cease and Desist Letter, but Revenue Up 1,000% YoY

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FTX US, the American arm of crypto exchange FTX, received a cease and desist letter from the Federal Deposit Insurance Corporation (FDIC) for allegedly making false representations about deposit insurance related to cryptocurrencies.

According to a press release, FTX US and four other websites (SmartAssets, FDICCrypto, Cryptonews and Cryptosec) misled the public about crypto-related products being insured by the FDIC. The companies have 15 days to remove the misleading statements and provide evidence to the FDIC.

Brett Harrison, CEO of FTX US, apologized and complied with the FDIC's request. He tweeted:

Only a few days ago, Sen. Pat Toomey (R-PA) released a letter, saying that "personnel in the FDIC's Washington, D.C. headquarters are urging FDIC regional offices to send letters to multiple banks requesting that they refrain from expanding relationships with crypto-related companies."

The FDIC has been vocal in pushing back against perceived contagion risks from the crypto sector to traditional banks.

FTX revenue up 1,000%

In much better news for FTX, its YoY revenue is up 1,000%, according to reporting by CNBC.

The news network claims access to internal documents that detail revenue growth from $90 million in 2020 to $1.2 billion in 2021. Operating income grew by 1,842.85%, from $14 million to $272 million. Net income experienced a 2182.35% increase from last year's $17 million to $388 million. Furthermore, the exchange saw a 2,182.35% increase from last year’s $17 million. According to CNBC, FTX had a profit margin of 27% in 2021, with $2.5 billion in cash by the end of the year.

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