The Fed demanded to close the bank, which is associated with Alameda

The Federal Reserve filed a lawsuit against Farmington State Bank and its main company FBH Corp. It is better known as Moonstone Bank. She was funded by the Alameda Company, which also did business with her.

What is known about the bank

Last year, SBF invested more than $11 million. For this, she was able to get a minority stake in the bank. At the same time, its size was not disclosed.

As soon as the investment was received from Alameda Research. the company started working with a new direction for itself — cryptocurrency. The Fed said that the bank changed its business plan, while not notifying the banking supervisory authorities in the right way. He had to get approval first.

At the beginning of this year, the bank announced that it was suspending the development of new industries. In late spring, he decided to sell his loan and deposit portfolio to Bank of Easter Oregon. This was reported by Bloomberg.

The message states that the lawsuit provides a guarantee that the organization will cease its activities. This will make it possible to protect not only customers, but also the Deposit Insurance Fund. Additionally, the lawsuit prohibits the payment of dividends or the distribution of capital. In addition, you cannot spend money or conduct certain activities without obtaining the approval of regulatory authorities.

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