Federal Reserve Ends Enforcement Action Against FTX-Connected Farmington State Bank

The Federal Reserve terminated its enforcement enactment against Washington-based Farmington State Bank, antecedently known arsenic Moonstone Bank and linked to FTX’s 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 genitor company, FBH Corporation. This termination marks the extremity of a scrutinized play for the Washington-based bank, erstwhile intertwined with the now-defunct cryptocurrency speech FTX.

Farmington State Bank, antecedently operating nether the moniker Moonstone Bank, recovered itself astatine the halfway of regulatory oversight pursuing its relation with FTX’s trading arm, Alameda Research. The Federal Reserve’s determination to terminate the enforcement enactment comes aft the slope completed its wind-down plan, efficaciously ceasing its banking operations.

The enforcement action, initiated successful July 2023, aimed to guarantee the orderly wind-down of Farmington’s operations, safeguarding the interests and deposits of its customers. The Federal Reserve successful the caller announcement stated:

The Board’s enforcement action…ensured the bank’s operations would upwind down successful a mode that protected the bank’s depositors. Farmington has completed its upwind down program and nary longer functions arsenic a bank.

This determination besides coincides with the termination of 2 long-standing enforcement actions against BNP Paribas, showing the Federal Reserve’s willingness to adjacent regulatory chapters with institutions that person complied with mandated corrective measures.

The nexus betwixt Farmington Bank and the volatile satellite of cryptocurrency trading came nether scrutiny aft it received astir $11.5 cardinal from Alameda Research done FBH Corporation successful March 2022. The illness of FTX successful November 2022 prompted a re-evaluation of Farmington’s engagement successful the crypto space, with the slope expressing its intent to revert to its relation arsenic a assemblage bank.

Do you deliberation the Federal Reserve did a bully occupation of handling Farmington State Bank? Share your thoughts and opinions astir this taxable successful the comments conception below.