The Federal Reserve has officially concluded an enforcement action against Farmington State Bank, a financial entity linked to the now-defunct cryptocurrency exchange FTX.
In a statement released on February 6, the Fed noted that following an enforcement action initiated in July 2023, Farmington State Bank has shuttered its operations and no longer functions as a bank. Consequently, the Fed has terminated its action against both Farmington and its holding company, FBH Corporation.
Formerly known as Moonstone, Farmington State Bank had received approximately $11.5 million in March 2022 from Alameda Research, a sister company of FTX, via FBH Corporation. The Fed's enforcement action in August 2023 aimed to curtail operations and safeguard depositors' interests. Following FTX's collapse in November 2022, Farmington announced its intention to withdraw from the cryptocurrency sector and revert to its original role as a community bank. Notably, neither the enforcement nor the termination action explicitly referenced FTX or Alameda.
In a separate development, on January 31, the Federal Reserve declared that it would maintain interest rates at a range of 5.25% to 5.50%. The announcements from the Federal Reserve often correlate with fluctuations in cryptocurrency prices, including that of Bitcoin.
