Federal Reserve Ends Enforcement Action Against Farmington State Bank, Formerly Tied to FTX
Summary:
The US Federal Reserve Board has ended its enforcement action against Farmington State Bank, formerly associated with the now-defunct cryptocurrency exchange FTX. The financial institution has phased out its operations and is no longer a bank. Farmington previously received $11.5 million from FTX's sister company, Alameda Research. Despite the conclusion of the enforcement action, Federal Reserve decisions continue to influence cryptocurrency trends.
The United States Federal Reserve Board recently disclosed the conclusion of its disciplinary intervention with Farmington State Bank, a financial firm linked to the dissolved cryptocurrency exchange FTX. The Fed's announcement on February 6 stated that post its enforcement action enforced in July 2023, Farmington had phased out its operations and now is no longer operating as a bank. The administrative penalty against Farmington and its parent company, FBH Corporation, has been lifted, as stated by the Federal Reserve.
Previously known as Moonstone, Farmington State Bank benefited from a substantial inflow of nearly $11.5 million from Alameda Research, the sister company of FTX, via the FBH Corporation in March 2022. The Fed confirmed in August 2023 that they took enforcement action in order to wind down operations and safeguard depositors. Upon the meltdown of FTX in November 2022, Farmington revealed its intention to withdraw from the crypto market and regain its primary role as a mainstream community bank. Neither the punitive action initiated by the Fed nor its subsequent termination specifically referred to FTX or Alameda. On January 31, the Fed disclosed that interest rates would steady at 5.25%-5.50%. It's often observed that the Federal Reserve's declarations can influence a fall or surge in cryptocurrency prices, including Bitcoin (BTC).
Published At
2/6/2024 8:44:37 PM
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