FTX stake in US bank raises concerns about banking loopholes
Cointelegraph
Published Nov 25, 2022 07:15AM ET
Updated Nov 26, 2022 09:20AM ET
The bankruptcy proceedings of cryptocurrency exchange FTX have revealed many new aspects of its unethical practices. The latest revelation around its stake in one of the smallest United States banks from rural Washington has raised fresh concerns about its operations and alleged misuse of banking loopholes.
Farmington State Bank in the state of Washington, now renamed Moonstone, is the 26th smallest bank in the U.S. — with a single branch and three employees. FTX invested in the rural bank through its now-bankrupt sister company, Alameda, with an investment of $11.5 million in its parent company FBH in March 2022. The Alameda investment was more than double the bank’s value of $5.7 million, reported The New York Times.
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Written By: Cointelegraph
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