{"id":44203,"date":"2023-01-20T15:08:33","date_gmt":"2023-01-20T19:08:33","guid":{"rendered":"https:\/\/coinscreed.com\/staging\/?p=44203"},"modified":"2023-01-20T15:08:41","modified_gmt":"2023-01-20T19:08:41","slug":"ftx-linked-moonstone-bank-to-exit-crypto-space","status":"publish","type":"post","link":"https:\/\/coinscreed.com\/staging\/ftx-linked-moonstone-bank-to-exit-crypto-space\/","title":{"rendered":"FTX-linked Moonstone bank to exit crypto space"},"content":{"rendered":"\n
Moonstone Bank, is rebranding itself, getting out of crypto and refocusing on its original customer base<\/a>.<\/h5>\n\n\n\n
\"FTX-linked
FTX-linked Moonstone bank to exit crypto space<\/figcaption><\/figure>\n\n\n\n

The Farmington, Washington-based Moonstone Bank has declared its withdrawal from the speculative cryptocurrency market<\/a> and any associated “innovation-driven” business strategies. <\/p>\n\n\n\n

According to a press announcement issued on Jan. 19, it was also returning to its previous name of Farmington State Bank, which it had maintained for 135 years.<\/p>\n\n\n\n

The FTX failure was not specifically mentioned by the bank. However, it claimed that “recent events” in the sector and the shifting regulatory environment that affects businesses dealing with digital assets were what ultimately motivated it to leave the crypto space.<\/p>\n\n\n\n

According to Moonstone Bank, its return to community banking will not result in any service interruptions for its neighborhood customers and will go into effect in the coming weeks. <\/p>\n\n\n\n

Additionally, it reaffirmed its dedication to “safe and sound operations,” which it claimed had preserved the liquidity of its books and the security of customer accounts.<\/p>\n\n\n\n

In addition to Moonstone's press release, a Forbes report claimed the company had begun notifying its cryptocurrency customers\r\n \r\n \r\n \r\n <\/g>\r\n \r\n \r\n \r\n <\/clipPath>\r\n <\/defs><\/svg><\/span><\/a> this week that their accounts will be closed. <\/p>\n\n\n\n

The article claims that Moonstone requested customers with digital asset accounts at the bank to halt all transactions and transfer their holdings to other banks.<\/p>\n\n\n\n

According to Forbes, after looking into client communications, it was discovered that Moonstone had not provided an explanation for why it was cancelling the accounts.<\/p>\n\n\n\n

The bank was the most recent financial organization associated with Sam Bankman-Fried's<\/a> defunct crypto empire to modify its business practices when prosecutors started looking into Mr. Bankman-Fried and his businesses.<\/p>\n\n\n\n

ALAMEDA RESEARCH GAVE $11.5 MILLION TO MOONSTONE<\/h2>\n\n\n\n

Prior to 2020, Moonstone was reportedly purchased by Jean Chalopin, the Bahamas-based chairman of Deltec, an FTX banking partner. Moonstone had previously focused on meeting the banking requirements of the Farmington community.<\/p>\n\n\n\n

According to rumors, Chalopin obtained an investment of $11.5 million from Alameda Research<\/a> in January 2022 to transform Moonstone into a financial services firm with a focus on cryptocurrency.<\/p>\n\n\n\n

A number of financial organizations have caught the attention of US politicians, including the bank. Senator Elizabeth Warren said she would inquire about Moonstone's exposure to Alameda's investment from banking regulators in December 2022.<\/p>\n\n\n\n

Moonstone had almost $50 million in FTX deposits spread across two accounts, Bahamian liquidators also found. The status of these funds is still unknown, according to reports. <\/p>\n\n\n\n

Additionally, the Bahamian liquidators contend in a motion submitted in December that Moonstone executives refused to give specifics about the accounts when asked to do so.<\/p>\n","protected":false},"excerpt":{"rendered":"

Moonstone Bank, is rebranding itself, getting out of crypto and refocusing on its original customer base. The Farmington, Washington-based Moonstone Bank has declared its withdrawal from the speculative cryptocurrency market and any associated “innovation-driven” business strategies. According to a press announcement issued on Jan. 19, it was also returning to its previous name of Farmington […]<\/p>\n","protected":false},"author":43,"featured_media":44205,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[1670,778,13114],"class_list":["post-44203","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-alameda-research","tag-ftx","tag-moonstone"],"jetpack_featured_media_url":"https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2023\/01\/croc_1674235278409.jpg","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/44203","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/users\/43"}],"replies":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/comments?post=44203"}],"version-history":[{"count":0,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/44203\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media\/44205"}],"wp:attachment":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media?parent=44203"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/categories?post=44203"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/tags?post=44203"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}