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

Solana cracks down on validator sandwich attacks
Prashant Jha12 hours agoSolana cracks down on validator sandwich attacksSandwiching occurs by placing one order before the transaction and another immediately after, which ensures that retail always gets the worst possib
FTX Co-Founder Sam Bankman-Fried Agrees to Testify Before US Congress
FTX Co-Founder Sam Bankman-Fried Agrees to Testify Before US Congress The co-founder of collapsed crypto exchange FTX, Sam Bankman-Fried (SBF), has agreed to testify at one of the
80% of Institutional Investors Expect Crypto to Overtake Traditional Investments, Survey Shows
80% of Institutional Investors Expect Crypto to Overtake Traditional Investments, Survey Shows A survey by crypto trading platform Bitstamp shows that 80% of institutional investor
El Salvador Approves Digital Assets Issuance Law
El Salvador Approves Digital Assets Issuance Law The Legislative Assembly of El Salvador approved the Digital Assets Issuance Law, a framework that will allow the country to issue
Bitcoin Price At $321,000 This Cycle? Analyst Says It’s The ‘Math’
Este artículo también está disponible en español. Crypto analyst Tony Severinohas provided an ultra-bullish outlook for the Bitcoin price, predicting that the flagship cr
Africa-Focused Venture Capital Firm Echovc Launches Blockchain Fund
Africa-Focused Venture Capital Firm Echovc Launches Blockchain Fund The Africa-focused venture capital (VC) firm, Echovc, has launched a fund that seeks to support blockchain start
Russian Official: Cryptocurrency Bill Completed — Effects on Payments, Exchanges, Miners
Russian Official: Cryptocurrency Bill Completed — Effects on Payments, Exchanges, Miners The chairman of the Russian State Duma Committee on Financial Markets has confirmed tha
Ana Paula Pereira5 hours agoBuenos Aires to issue blockchain-based digital IDThe first documents available on-chain in Buenos Aires will include birth and marriage certificates, along with proof of income and academic ve
Trial Back on After Craig Wright Breaks Bitcoin Settlement Agreement
Australian-born technologist Craig Wright has attested that he cannot finance his court settlement negotiated with the Kleiman estate. According to a court document filed in the Sou
XRP Price Face Major Resistance At $2.9, Why This Analyst Believes $20 Is Still Possible
Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and pu
Ana Paula Pereira6 hours agodYdX raises margin requirements in some markets, bans “highly profitable trades”The decentralized exchange increased margin requirements on several markets on Nov. 18, after an alleged tar
Tom Mitchelhill4 hours agoCrypto miner Hive Digital drops ‘blockchain’ from name amid pivot to AIHive made the rebrand to reflect its “evolving focus” on revenue opportunities in AI, cloud computing and GPUs.1215