The Federal Reserve Board of the United States announced it terminated an enforcement action against Farmington State Bank, a financial institution tied to the defunct cryptocurrency exchange FTX.
In a Feb. 6 statement, the Fed said following its July 2023 enforcement action, Farmington had winded down operations and “no longer functions as a bank.” The Federal Reserve said it terminated its actions against Farmington and its holding company, FBH Corporation.
Today's #EnforcementActions: https://t.co/Vp7efrmWk2https://t.co/aIoXshnNa0
— Federal Reserve (@federalreserve) February 6, 2024
Formerly named Moonstone, Farmington State Bank received roughly $11.5 million from FTX’s sister firm, Alameda Research, through FBH Corporation in March 2022. The Fed said in August 2023 that the enforcement action was taken to wind down operations and protect depositors.
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After the collapse of FTX in November 2022, Farmington said it planned to exit the crypto space to return to its “original mission” as a community bank. Neither the Fed enforcement action nor the termination of its action explicitly mentioned FTX or Alameda.
On Jan. 31, the Fed said interest rates would stay at 5.25%–5.50%. Announcements from the Fed sometimes correlate with a drop or rise in the price of cryptocurrencies, including Bitcoin (BTC).
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