The Fed withdrew measures from a bank linked to FTX

The United States Federal Reserve Board announced the completion of enforcement proceedings against Farmington State Bank

The United States Federal Reserve Board announced that it has completed an enforcement action against Farmington State Bank, a financial institution linked to the defunct cryptocurrency exchange, FTX.

According to the statement issued on February 6, the Fed reported that, following the enforcement action taken in July 2023, Farmington closed its operations and no longer operates as a bank.

Formerly known as Moonstone, Farmington State Bank received approximately $11.5 million from FTX’ssister company, Alameda Research, through FBH Corporation in March 2022. The Fed stated in August 2023 that the enforcement action was carried out to close operations and protect depositors.

After the FTX collapse in November 2022, Farmington initially announced its intention to leave the crypto space and return to its “original mission” as a community bank. However, neither the Fed’s enforcement action nor the termination of its action explicitly mentioned FTX or Alameda.

On January 31, the Fed announced that interest rates would remain in the range of 5.25% to 5.50%. Sometimes, the Fed’s announcements correlate with falls or increases in the price of cryptocurrencies, including bitcoin.

K. Tovar

Source: FederalReserve

(Reference image source: Bermix Studio, Unsplash)

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