FTX bought a tiny rural bank to Launder Money

The little bank had about 10M in assets, suddenly it had more than 80M. The bank is so small there are only 3 employees and no internet banking ability.
Edit: Now they have 5 employees but somehow they just added high tech internet capabilities.

[link to www.pymnts.com (secure)]
One of the assets that have come to light during the bankruptcy of FTX is reportedly a stake in a U.S.-licensed bank, which it owns through a subsidiary.

Farmington State Bank in the state of Washington — which now goes by the name Moonstone Bank online — became tied to FTX in March when the crypto exchange’s sister company Alameda Research invested $11.5 million in FBH, the bank’s parent company, The New York Times reported Wednesday (Nov. 23).

“The fact that an offshore hedge fund that was basically a crypto firm was buying a stake in a tiny bank for multiples of its stated book value should have raised massive red flags for the FDIC [Federal Deposit Insurance Corporation], state regulators and the Federal Reserve,” Calvert Advisors President and CEO Camden Fine, a bank industry consultant, said in the report. “It’s just astonishing that all of this got approved.”

Last Edited by Doctor Congo on 11/24/2022 11:39 AM