The Federal Reserve has abandoned its FTX-related enforcement action against Bank of America
The United States Federal Reserve Board has announced that it has dropped its enforcement action against the financial institution linked to the defunct cryptocurrency exchange FTX by Farmington State Bank.
In the year The Federal Reserve announced that it was ending its actions against Farmington and its company, FBH Corp.
Today's #Executive Actions: https://t.co/Vp7efrmWk2https://t.co/aIoXshnNa0
— Federal Reserve (@federalreserve) February 6, 2024
Farmington State Bank, formerly known as Moonstone, acquired FTX sister firm Alameda Research through FBH Corporation for approximately $11.5 million in March 2022. The Fed said the August 2023 enforcement action was taken to stop operations and protect depositors.
Related: Fed up with banks and centralized exchanges? It's time for a change.
In the year After the FTX collapse in November 2022, Farmington said it plans to exit the crypto space to return to its “core mission” as a community bank. Neither the federal enforcement action nor the termination of the action specifically named FTX or Alameda.
On January 31, the Fed said interest rates will remain at 5.25%-5.50%. Announcements from the Fed are sometimes related to falls or rises in the value of cryptocurrencies, including Bitcoin (BTC).
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