Odaily News The Federal Reserve has issued a cease and desist order to crypto-friendly bank United Texas Bank, citing "significant deficiencies" in the bank's risk management system and crypto client business. The Fed's May inspection found problems with the bank's corporate governance structure and "negligence" by the board and senior management. The main deficiencies involved foreign correspondent banking and virtual currency clients, particularly risk management and anti-money laundering compliance. United Texas Bank has taken steps to strengthen compliance with the Bank Secrecy Act and anti-money laundering program, and has agreed to submit a formal plan to strengthen board oversight. The bank currently has 75 employees and manages approximately $1 billion in assets. Notably, the Fed took similar action against another crypto-friendly bank, Customers Bancorp, in August. Dan Spuller, director of affairs for the Blockchain Association, believes this is a continuation of "Operation Cutoff 2.0," suggesting that the government may be coordinating to prevent banks from working with the crypto industry.