Now, the Federal Reserve Board has issued a cease and desist to Farmington State/Moonstone, claiming they have violated the commitments they made while going through the approval process. Despite promises not to do so, the bank engaged in digital asset activity, reportedly working with stablecoin issuers.
Farmington State Bank, also known as Moonstone Bank, is a tiny Washington state bank that drew scrutiny after the FTX collapse for receiving an outsized investment from the firm. The investment appeared to be an attempt by FTX to gain control of a US bank, and raised questions over how the purchase was approved by federal regulators.
- "Crypto Firm FTX’s Ownership of a U.S. Bank Raises Questions", New York Times
- "Alameda-funded bank Farmington State gets cease and desist from Fed", Protos
- Cease and desist from the Board of Governors of the Federal Reserve System