Wednesday, May 22, 2024

Federal Reserve drops enforcement action against FTX-linked US bank

The Federal Reserve Board of the US introduced it terminated an enforcement motion in opposition to Farmington State Financial institution, a monetary establishment tied to the defunct cryptocurrency alternate FTX.

In a Feb. 6 assertion, the Fed said following its July 2023 enforcement motion, Farmington had winded down operations and “not capabilities as a financial institution.” The Federal Reserve stated it terminated its actions in opposition to Farmington and its holding firm, FBH Company.

Previously named Moonstone, Farmington State Financial institution acquired roughly $11.5 million from FTX’s sister agency, Alameda Analysis, via FBH Company in March 2022. The Fed stated in August 2023 that the enforcement motion was taken to wind down operations and shield depositors.

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After the collapse of FTX in November 2022, Farmington said it planned to exit the crypto house to return to its “authentic mission” as a neighborhood financial institution. Neither the Fed enforcement motion nor the termination of its motion explicitly talked about FTX or Alameda.

On Jan. 31, the Fed said interest rates would keep at 5.25%–5.50%. Bulletins from the Fed generally correlate with a drop or rise within the value of cryptocurrencies, together with Bitcoin (BTC).

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