TechFlow reported, according to Bloomberg, the Federal Reserve said Tuesday it has terminated its enforcement action against Farmington State Bank, a bank linked to the cryptocurrency exchange FTX.
The Fed's action, initiated in July last year, ensured the bank could protect depositors in the event of bankruptcy. Farmington will no longer conduct banking operations.
The Federal Reserve stated that in 2022, Farmington improperly changed its business plan without notifying banking regulators or obtaining prior approval for such changes. Alameda Research acquired shares in Farmington State Bank for $11.5 million in January 2022. Jean Chalopin, chairman of FBH, the parent company of Farmington State Bank, also serves as chairman of Deltec Bank & Trust in the Bahamas. Deltec International Group, the parent company of the bank, reportedly received a $50 million loan from FTX.
