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Post: Termination of Enforcement Action Against Farmington State Bank by the Federal Reserve Board

Termination of Enforcement Action Against Farmington State Bank by the Federal Reserve Board

Key Points:

  • The Federal Reserve Board of the United States has terminated an enforcement action against Farmington State Bank.
  • Farmington State Bank, a financial institution tied to the defunct cryptocurrency exchange FTX, had winded down its operations and no longer functions as a bank.
  • The enforcement action was taken in July 2023 to protect depositors and wind down operations.
  • Formerly named Moonstone, Farmington State Bank had received approximately $11.5 million from FTX’s sister firm, Alameda Research, through FBH Corporation in March 2022.

Termination of Enforcement Action Against Farmington State Bank by the Federal Reserve Board:

The Federal Reserve Board of the United States has announced the termination of an enforcement action against Farmington State Bank, a financial institution linked to the defunct cryptocurrency exchange FTX. The Fed stated that Farmington State Bank had ceased its operations and no longer operated as a bank following the initial enforcement action in July 2023. The action was taken by the Federal Reserve to wind down the bank’s operations and protect depositors.

Background on Farmington State Bank and its Connection to FTX:

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. Following the enforcement action in July 2023, the bank has now wound down its operations and is no longer functioning as a bank. As a result, the Federal Reserve Board has terminated the enforcement action against Farmington State Bank and its holding company, FBH Corporation.

Hot Take:

This termination of enforcement action indicates the conclusion of regulatory action against Farmington State Bank and its ties to the defunct cryptocurrency exchange FTX. It highlights the importance of regulatory oversight in the cryptocurrency industry to protect depositors and ensure the proper functioning of financial institutions.

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