Federal Reserve Ends Enforcement Action Against FTX-Connected Farmington State Bank
The Federal Reserve terminated its enforcement action against Washington-based Farmington State Bank, previously known as Moonstone Bank and linked to FTXs Alameda Research.
Federal Reserve Terminates Enforcement Action of FTX-Linked Farmington Bank
The Federal Reserve Board has officially concluded its enforcement actions against Farmington State Bank and its parent company, FBH Corporation. This termination marks the end of a scrutinized period for the Washington-based bank, once intertwined with the now-defunct cryptocurrency exchange FTX.
Farmington State Bank, previously operating under the moniker Moonstone Bank, found itself at the center of regulatory oversight following its association with FTXs trading arm, Alameda Research. The Federal Reserves decision to terminate the enforcement action comes after the bank completed its wind-down plan, effectively ceasing its banking operations.
The enforcement action, initiated in July 2023, aimed to ensure the orderly wind-down of Farmingtons operations, safeguarding the interests and deposits of its customers. The Federal Reserve in the recent announcement stated:
The Boards enforcement actionensured the banks operations would wind down in a manner that protected the banks depositors. Farmington has completed its wind down plan and no longer functions as a bank.
This move also coincides with the termination of two long-standing enforcement actions against BNP Paribas, showing the Federal Reserves willingness to close regulatory chapters with institutions that have complied with mandated corrective measures.
The link between Farmington Bank and the volatile world of cryptocurrency trading came under scrutiny after it received approximately $11.5 million from Alameda Research through FBH Corporation in March 2022. The collapse of FTX in November 2022 prompted a re-evaluation of Farmingtons engagement in the crypto space, with the bank expressing its intent to revert to its role as a community bank.
Do you think the Federal Reserve did a good job of handling Farmington State Bank? Share your thoughts and opinions about this subject in the comments section below.
Source: Bitcoin.com
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Text source: Crypto Breaking News
