On March 19, 2024, the FDIC issued letters demanding three companies and certain associated parties to cease and desist from making false and misleading statements about FDIC deposit insurance. PrizePool, Inc., AmeriStar, LLC, and HighLine Gold, LLC were asked to take immediate corrective action to address the said false or misleading statements.
According to the FDIC, the three companies and certain associated parties made false representations by:
Stating or suggesting they are FDIC-insured or that certain uninsured financial products are insured by the FDIC;
Misusing the FDIC name or logo;
Misrepresenting the nature or extent of deposit insurance; and/or
Failing to clearly identify the insured depository institutions with which they have a relationship for the placement of customer deposits and into which funds may be deposited.
The FDIC found that these misrepresentations are causing harm, or have the potential to cause harm, to consumers.
Read the FDIC’s press release here.
The FDIC's letter to PrizePool, Inc can be found here.
The FDIC's letter to AmeriStar, LLC and HighLine Gold, LLC can be found here.
