Fun

News Feed - 2023-08-18 03:08:00

Turner Wright15 hours agoFederal Reserve issues enforcement action against FTX-linked US bankMoonstone Bank, which renamed itself Farmington State Bank, received roughly $11.5 million from FTX’s sister firm, Alameda Research, through its holding company in 2022.9480 Total views8 Total sharesListen to article 0:00NewsJoin us on social networksThe Federal Reserve Board of the United States and the Washington State Department of Financial Institutions have announced an enforcement action against Farmington State Bank, a financial institution whose parent company received more than $11 million from Alameda Research.


In an Aug. 17 announcement, the Fed said the enforcement action was related to Farmington “improperly chang[ing] its business plan” in 2022 without proper notification and approval. The bank did not inform the Fed it intended "to pursue a strategy focused on digital banking services or digital assets.” Formerly named Moonstone, Farmington received roughly $11.5 million from FTX’s sister firm Alameda through its holding company FBH Corporation in March 2022.


“The Board"s action ensures the bank"s operations will wind down in a manner that protects the bank"s depositors and the Deposit Insurance Fund,” said the Fed. “The action also prohibits Farmington and FBH from making dividends or capital distributions, dissipating cash assets, and engaging in certain activities without approval from its supervisors.”Today’s #EnforcementActions:https://t.co/bTmGeUBJdP— Federal Reserve (@federalreserve) August 17, 2023


Farmington announced in January that it planned to exit the crypto space in an effort to return to its “original mission” as a community bank. However, the Fed enforcement action suggests the bank had “engage[d] in activities related to digital assets,” including facilitating the issuance of stablecoins for an unnamed third party “in exchange for receipt of 50 percent of mint and burn fees.”


The Fed reported Farmington, based in Washington, had planned to sell its loans and deposits to the Bank of Eastern Oregon. Neither the Fed enforcement action nor the move to leave the space explicitly mentioned crypto exchange FTX, which declared bankruptcy in November 2022.


Related:Crypto highlighted as ‘novel and complex’ risk to US banks: FDIC report


The enforcement action represented the latest by federal regulators against banks with ties to crypto firms and investors in the wake of the FTX collapse. Silvergate Bank’s parent company announced in March it planned to “wind down operations” for the crypto bank. This action preceded Silicon Valley Bank collapsing amid a run on deposits and the Federal Deposit Insurance Corporation shutting down the crypto-friendly Signature Bank.


U.S. lawmakers conducted several hearings in the wake of the bank failures, with some suggesting that ties to crypto firms had contributed to the banks’ collapse. New York Department of Financial Services superintendent Adrienne Harris reportedly said it was “ludicrous” to blame digital assets for the collapse of Signature.


Magazine:Can you trust crypto exchanges after the collapse of FTX?# Federal Reserve# Banks# United States# FTX# RegulationAdd reactionAdd reactionRelated NewsHow to earn passive income with peer-to-peer lendingFrom the U.S. to Japan, regulators are beginning to embrace crypto2024 could be very bullish for crypto — Here’s why

News Feed

Bitcoin Mining Difficulty Reaches Lifetime High, It’s Now More Difficult Than Ever Before to Find a Block Reward
Bitcoin Mining Difficulty Reaches Lifetime High, It"s Now More Difficult Than Ever Before to Find a Block Reward Following the drop in value during Thursday evening’s tradin
Ana Paula Pereira3 hours agoVC Roundup: Enterprise blockchain, Bitcoin staking and Web3 pique investors’ interestOrbital, ZTX, Stroom Network, unshETH and Fxhash highlight the latest funding deals from the world of cry
Bitcoin miner profits get squeezed as hash price drops to lowest since October 2023
Ana Paula Pereira6 hours agoBitcoin miner profits get squeezed as hash price drops to lowest since October 2023After enjoying record profits during Bitcoin’s recent halving, miners now face a sharp decline in hash pric
World’s Largest NFT Marketplace Opensea Reveals Drop Improvements, Arbitrum L2 Support
World"s Largest NFT Marketplace Opensea Reveals Drop Improvements, Arbitrum L2 Support The largest non-fungible token (NFT) marketplace by sales volume, Opensea, has announced a ne
Patient Capital Management switches out Grayscale Bitcoin Trust for BTC ETP
Derek Andersen7 hours agoPatient Capital Management switches out Grayscale Bitcoin Trust for BTC ETPThe asset manager"s Opportunity Trust Fund has $1.4 billion in assets under management.2565 Total views3 Total sharesLis
Nvidia outperforms Apple by 25x, ahead of 10-to-1 stock split
Zoltan Vardai11 hours agoNvidia outperforms Apple by 25x, ahead of 10-to-1 stock splitWhile stock splits are a sign of confidence in a company’s future performance, they could introduce significant price volatility aft
SEC Deems DASH, ALGO, and OMG ‘Unregistered Securities’ in Bittrex Lawsuit
SEC Deems DASH, ALGO, and OMG "Unregistered Securities" in Bittrex Lawsuit According to the recent complaint by the U.S. Securities and Exchange Commission (SEC) against Bittrex, t
Tokenized asset market to hit $10T by 2030: Chainlink report
Josh O"Sullivan5 hours agoTokenized asset market to hit $10T by 2030: Chainlink reportDespite current crypto market volatility, Chainlink projects rapid growth in tokenized assets, driven by institutional demand and regu
Asset Manager Values Bitcoin at $500K, Expects BTC to Be Worth More Than Gold, Sees Massive Institutional Interest
Asset Manager Values Bitcoin at $500K, Expects BTC to Be Worth More Than Gold, Sees Massive Institutional Interest One River Asset Management’s CEO says hi
Growing Number of US Mayors Want to Be Paid in Bitcoin
Growing Number of US Mayors Want to Be Paid in Bitcoin A growing number of mayors in cities across the U.S. have said they want to be paid in bitcoin. The mayor of Miami said he is
Citibank Executive Says Bitcoin Will Trade at $318,000 by End of 2021
Citibank Executive Says Bitcoin Will Trade at $318,000 by End of 2021 Citibank Group’s Global head of Citifxtechnicals product, Tom Fitzpatrick expects to
Nivesh Rustgi7 hours agoSolana price hits a 2023 high, but do strong fundamentals back the SOL rally?SOL’s price rallied to a year-to-date high above $30, but Solana’s struggle with increasing its user stats calls th