FTX-linked Moonstone bank to exit the crypto space

Moonstone Bank, a agrarian Washington authorities slope that received an estimated $11.5 cardinal concern from FTX’s sister company, Alameda Research, has announced contiguous that it volition beryllium exiting the crypto abstraction and returning to its "original mission" arsenic a assemblage bank. 

In a connection released by the slope — present known arsenic Farmington State Bank — connected Jan. 19, it cited that the alteration successful strategy comes arsenic a effect of “recent events successful the crypto assets manufacture and the changing regulatory situation surrounding crypto plus businesses.” 

As portion of the bank’s inaugural to "return to its roots," it shared that said it volition nary longer usage the sanction Moonstone Bank and volition beryllium rebranding and adopting the well-known Farmington State Bank name, which has been a portion of the section assemblage for 135 years.

According to the bank, the alteration is estimated to instrumentality effect successful the coming weeks and section banking customers volition not acquisition immoderate disruption of services.

Although the slope did not outrightly mention the illness of FTX arsenic portion of its determination to re-strategize and rebrand, it is understood that these events whitethorn beryllium linked.

Moonstone Bank was reportedly acquired successful 2020 by Jean Chalopin, the Bahamas-based president of Deltec, which is different FTX banking partner. Chalopin reportedly secured an $11.5 cardinal concern from Alameda Research successful January 2022 to alteration Moonstone into a crypto-focused fiscal services firm. 

Related: Silvergate sold assets astatine nonaccomplishment and chopped unit to screen $8.1B successful withdrawals: Report

Farmington State Bank appears to beryllium connected the increasing database of banks affected by the abrupt implosion of FTX. 

On Jan. 5, Cointelegraph reported that the FTX debacle has triggered a slope tally connected Silvergate, causing the institution to merchantability disconnected its assets astatine a nonaccomplishment and chopped unit by 40% to screen $8.1 cardinal worthy of lawsuit withdrawals. As a effect of this, Silvergate dismissed astir 200 employees, which was 40% of its full personnel. Additionally, the slope canceled its program to motorboat its ain integer currency project.