Important detail, indeed.

>The true value of the FDIC play is to scam fools.

Not really. It's true that it doesn't protect you in the event that the event gets hacked or whatever, however it does protect you from the exchange deciding to store its funds in some shady offshore bank (I think Tether does this) that later suffers a liquidity crisis.

It doesn't really: the problem is the exchanges dont store money in banks in the first place, they give it immediately to deltec to get USDT, then monkey around with it. Then ofc some of it is FDIC insured for a small amount, but they advertise it shadily to make you believe you're insured up to that amount.

Even FTX got fined for their abusive use of FDIC marketing...