Crypto Firm FTX's Ownership of US Bank Raises Questions
Through a subsidiary, FTX has invested $11.5 million in the parent company of Farmington State Bank, which has no only one branch and, until this year, only three employees.
Alameda Research has invested $11.5 million in Farmington State Bank parent company FBH.Credit...Dan Pelle/The Spokesman-ReviewAmong the many surprising assets discovered was the bankruptcy of the exchange nge of cryptocurrency FT X is a relatively small bank that could raise big concerns: a stake in one of the smallest banks in the country.
The bank, Farmington State Bank in Washington State has only one branch and, until this year, only three employees. It did not offer online banking or even a credit card.
The small bank's connection to the FTX collapse raises new questions about the exchange and its operations. Among them: how closely is FTX, which was based in the Bahamas, connected to the broader financial system? What else could regulators have missed? And in the hunt for FTX's missing assets, how will Farmington be dragged into the multibillion-dollar bankruptcy?
The links between FTX and Farmington State Bank began in March when Alameda Research, a junior trading company and sister company to FTX, invested $11.5 million in the bank's parent company, FBH.
At the time, Farmington was the 26th smallest bank in the nation out of 4,800. His net worth was $5.7 million, according to the Federal Deposit Insurance Corporation.
FTX's investment, which financial regulators said was more than double the bank's net worth, was led by Ramnik Arora, a top lieutenant of exchange founder Sam Bankman-Fried. Mr. Arora was responsible for many of the many...
Through a subsidiary, FTX has invested $11.5 million in the parent company of Farmington State Bank, which has no only one branch and, until this year, only three employees.
Alameda Research has invested $11.5 million in Farmington State Bank parent company FBH.Credit...Dan Pelle/The Spokesman-ReviewAmong the many surprising assets discovered was the bankruptcy of the exchange nge of cryptocurrency FT X is a relatively small bank that could raise big concerns: a stake in one of the smallest banks in the country.
The bank, Farmington State Bank in Washington State has only one branch and, until this year, only three employees. It did not offer online banking or even a credit card.
The small bank's connection to the FTX collapse raises new questions about the exchange and its operations. Among them: how closely is FTX, which was based in the Bahamas, connected to the broader financial system? What else could regulators have missed? And in the hunt for FTX's missing assets, how will Farmington be dragged into the multibillion-dollar bankruptcy?
The links between FTX and Farmington State Bank began in March when Alameda Research, a junior trading company and sister company to FTX, invested $11.5 million in the bank's parent company, FBH.
At the time, Farmington was the 26th smallest bank in the nation out of 4,800. His net worth was $5.7 million, according to the Federal Deposit Insurance Corporation.
FTX's investment, which financial regulators said was more than double the bank's net worth, was led by Ramnik Arora, a top lieutenant of exchange founder Sam Bankman-Fried. Mr. Arora was responsible for many of the many...
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