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

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

2m
3 months 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

Índice

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.

This article contains links to third-party websites or other content for information purposes only (“Third-Party Sites”). The Third-Party Sites are not under the control of CoinMarketCap, and CoinMarketCap is not responsible for the content of any Third-Party Site, including without limitation any link contained in a Third-Party Site, or any changes or updates to a Third-Party Site. CoinMarketCap is providing these links to you only as a convenience, and the inclusion of any link does not imply endorsement, approval or recommendation by CoinMarketCap of the site or any association with its operators. This article is intended to be used and must be used for informational purposes only. It is important to do your own research and analysis before making any material decisions related to any of the products or services described. This article is not intended as, and shall not be construed as, financial advice. The views and opinions expressed in this article are the author’s [company’s] own and do not necessarily reflect those of CoinMarketCap. CoinMarketCap is not responsible for the success or authenticity of any project, we aim to act as a neutral informational resource for end-users.
4 people liked this article