- Farmington State Bank employed three people, and was the 26th smallest bank in America. There were 4,800 banks.
- The stake of $11.5 million was purchased by FTX. This happened during FTX’s bankruptcy.
- This stake was twice as large as the bank’s net worth before.
FTXThe price has fallen below You will be subject to more scrutiny after it emerged that the collapsed crypto giant owned an $11.5 million stake in one of America’s smallest banks – more than double the bank’s previous net worth – The New York Times reported.
Local newspaper described Farmington State Bank as “no frills”, because it is located in Farmington, Washington. The Spokesman ReviewIn 2010. John Widman, the company’s former president, stated to the newspaper that it had stopped making loans for mortgages because the paperwork was too difficult.
It had just one branch with three employees, and did not offer online banking or credit cards. Instead, it specialized in loans for farmers.
FTX’s investment in the FTX was revealed during the Case of bankruptcy for a crypto companyThis raises concerns about the company’s financial strategy.
The relationship between the farmers’ bank of crypto exchange and the farmer’s bank began in March when Alameda Research, FTX’s sister, invested in Farmington, FBH’s parent company. The purchase was led and managed by Ramnik AroraOne of the most important is Sam Bankman, FriedThe inner circle of’s, often responsible for larger deals.
It was 26th in America among 4,800 banks. FTX had a net worth $5.7 million and its stake was more than twice the bank’s.
Farmington only has 146 residents. Google Street View isn’t able to cover the entire town.
Farmington’s bank had around $10 million of deposits for a decade. In the third quarter this year, deposits jumped to $84 million – 85% of which came from just four accounts, according to FDIC data cited by the Times.
Online, the bank appears now as “Moonstone Bank”, a name that was trademarked a few short days before FTX invested. Moonstone does not mention cryptocurrency but says it wants to “support evolution of next-generation finance.”
Questions surround the approval of Farmington by the federal government for FTX to purchase its Farmington stake. According to banking veterans, it is hard to believe that regulators would allow the crypto company to do this.
Moonstone and FTX failed to respond immediately to a request of comment sent outside of US business hours.
