Market News: The Federal Reserve takes action against Farrington State Bank, which is associated with FTX.

Odaily News: Market reports indicate that the Federal Reserve has taken action against Moonstone Bank, a state bank associated with the cryptocurrency exchange FTX. The Federal Reserve Committee stated that its actions ensure that the bank, operating under the name of Moonstone Bank, ceases its operations in a manner that protects depositors and the deposit insurance fund.



The document states that Moonstone Bank operated under the name of Moonstone Bank and, without notifying regulatory authorities and obtaining their approval, inappropriately shifted towards a business plan that supports digital assets in 2022. The joint enforcement action by the Federal Reserve and the Washington State Department of Financial Institutions prohibits this Washington state-based bank from "paying dividends or capital distributions, depleting cash assets, and engaging in certain activities" without regulatory authorization. (CoinDesk)



In previous news, US prosecutors seized $50 million from the accounts of SBF at the Moonstone Bank in Washington state. Alameda Research acquired shares of Moonstone Bank for $11.5 million in January last year.