FTX-linked Farmington Bank freed from Federal Reserve’s enforcement grasp.

February 6, 2024
1 min read

In a statement from the Federal Reserve, it has been announced that the enforcement action against Farmington State Bank, which had ties to collapsed crypto exchange FTX, has ended. The action was put in place to ensure the bank’s operations would wind down in a manner that protected its depositors. Farmington State Bank, which used to do business as Moonstone Bank, had direct ties to FTX’s trading arm Alameda Research. The termination of the enforcement action indicates that Farmington has completed its wind-down plan and is no longer functioning as a bank.

The Federal Reserve also terminated two enforcement actions with BNP Paribas in Paris, France on the same day.

Earlier in 2022, Senators Elizabeth Warren and Tina Smith had written to the Federal Reserve inquiring about the bank’s ties to FTX and how Alameda Research was able to buy Moonstone Bank. The termination of the enforcement action suggests that the Federal Reserve has concluded its investigation into Farmington Bank and is satisfied with the bank’s wind-down plan.

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