Alameda-funded bank Farmington State gets cease and desist from Fed
The Board of Governors of the Federal Reserve System has issued a cease and desist order (C&D) to Farmington State Bank, claiming that it violated commitments it made in the process of gaining approval. The board is joined by the Washington State Department of Financial Institutions (WSDFI) and Farmington State Bank has consented to the order. Jean Chalopin, the president and chairman of FBH, the company that owned Farmington State Bank, also runs the popular Bahamas-based crypto bank Deltec. The bank has provided services to many crypto companies, including FTX, Alameda Research, Tether, and Bitfinex. Alameda Research had invested $11.5 million in Farmington State Bank at about the same time that Alameda Research extended an approximately $50 million loan to Deltec International Group, which owns Deltec Bank. The curious case of FTX and Farmington State Bank, aka Moonstone Farmington had previously announced its liquidation and sale of deposits and assets to the Bank of Eas...