Federal Reserve Ends FTX-linked US Bank Enforcement
The United States Federal Reserve Board has announced that it has ended its enforcement action against Farmington State Bank, which had ties to the now-defunct cryptocurrency exchange FTX. The Federal Reserve stated that Farmington has ceased operations and no longer functions as a bank after the enforcement action was taken in July 2023. The termination of the actions includes both Farmington and its holding company, FBH Corporation. Farmington State Bank, previously known as Moonstone, had received around $11.5 million from Alameda Research, a sister company of FTX, through FBH Corporation in March 2022. The Federal Reserve’s enforcement action aimed to protect depositors and wind down operations. Farmington had stated its intention to exit the crypto industry and return to its original mission as a community bank following the collapse of FTX in November 2022. While the Fed did not directly mention FTX or Alameda in its enforcement action or termination announcement, it is worth noting that the Fed’s announcements have historically influenced the price of cryptocurrencies, such as Bitcoin. As of January 31, the Federal Reserve announced that interest rates would remain between 5.25% and 5.50%.
9 thoughts on “Federal Reserve Ends FTX-linked US Bank Enforcement”
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The termination of the actions against Farmington and FBH Corporation demonstrates the Federal Reserve’s responsibility in overseeing the banking sector.
Farmington State Bank should be held accountable for its actions. This is a slap on the wrist.
Ending the enforcement action against Farmington State Bank is a win for everyone involved! The completion of the wind-down process allows for a fresh start.
Wow, another cryptocurrency-related failure. How can we trust these banks?
The Federal Reserve’s actions are too little, too late. The damage has already been done.
It’s sad to see the impact of these cryptocurrency failures on individuals and communities.
Farmington State Bank’s decision to return to its original mission as a community bank shows their commitment to serving their local community.
It’s interesting to note the potential impact of the Federal Reserve’s announcements on cryptocurrency prices, such as Bitcoin. The crypto market can be influenced by various factors.
It’s reassuring to see the Federal Reserve taking action to safeguard depositors and wind down operations when necessary.