New crypto investors and traders rely on centralized crypto exchanges like Coinbase, Gemini, etc., or crypto platforms like Nexo to start their crypto journey, from depositing their cash to buying crypto.

Many users use these exchanges/platforms to store both crypto and cash for regular purchases or dollar-cost averaging. However, cash on these crypto exchanges and platforms is not as safe as on Juno’s checking account. Crypto exchanges and platforms are not licensed banks. They partner with banking institutions to hold users’ cash deposits.

As we have seen with FTX and Signature Bank failure, there are 2 types of bankruptcy risks associated with your cash:

1. Crypto exchange or platform going bankrupt (FTX or BlockFi) - Where the crypto platform/exchange is bankrupt due to business failure, and its associated banking partners are unaffected.

2. Banking partner who holds users’ cash deposits going bankrupt (Signature Bank) - The banking partner is bankrupt due to its business failure, but the crypto exchange or platform is unaffected.

For Crypto Exchanges - Coinbase, Binance US, Gemini

Note - In case of the banking partner's bankruptcy, crypto deposits are not insured on crypto exchanges.

Recently for Coinbase, when Signature Bank, one of the Coinbase banking partners, collapsed, Coinbase communicated and assured its users that all users' funds were safe and had a pass-through FDIC insurance policy with the banking partner. Here is the thread from the official coinbase account.

For Crypto Platforms - Crypto. com and Nexo

Why Juno is Different?

Why FDIC is important?

Over the last several months, the US Fed has continued to increase its interest rates to combat inflation. The steep increase in interest rates in such a short period was dangerous to banks, as these banks' primary lending business was severally affected. Hence, depositors rely only on keeping their cash in FDIC-insured bank accounts, as no depositor has lost a single dollar of FDIC-insured funds due to bank failure.

Thus, Juno offers you the best solution and protects your cash during different bankruptcy risks. And you can also earn a 5% bonus on your cash deposits (banking services provided by Evolve Bank & Trust).

Reference:

1. Coinbase FDIC insurance information

2. Gemini FDIC insurance information

3. Binance US FDIC insurance information

4. Crypto.com insurance information

5. Nexo insurance information

QUICK LINKS

How to close exchange accounts

How to close a Binance US Account
How to close a Kraken Account
How to close a Gemini Account
How to close a Nexo Account
How to close a Crypto.com Account
How to close a Coinbase Account

Claim FDIC insurance

How to claim FDIC Insurance?