The emergence of crypto currency has led to questions about whether or not funds with crypto companies are eligible for Federal Deposit Insurance Corporation (FDIC) deposit insurance coverage. The short answer is, just like funds held at companies such as PayPal® and Venmo, funds held at crypto companies are NOT eligible for FDIC coverage. For more details, check out this FDIC fact sheet to learn what you should know about FDIC deposit insurance and crypto companies.
FDIC provides deposit insurance to protect bank depositors in the unlikely event an FDIC-insured bank fails. Each bank depositor is insured for up to at least $250,000, though since the FDIC began insuring deposits in 1934, no depositor has lost a penny of FDIC-insured funds due to a bank failure.