FTX stake in US bank raises concerns over bank loopholes
Rural bank chairman Jean Chalopin is also chairman of Deltec Bank, which has Tether and Alameda on its list of clients.
New
The bankruptcy proceedings of cryptocurrency exchange FTX have revealed many new aspects of its unethical practices. The latest revelation about his stake in one of the smallest US banks in the Washington campaign has raised new concerns about his operations and the alleged misuse of bank loopholes.
Farmington State Bank in Washington State, now renamed Moonstone, is the 26th smallest bank in the United States with one branch and three employees. FTX invested in the rural bank through its now-bankrupt sister company Alameda with an $11.5 million investment in its parent company FBH in March 2022. Alameda's investment represented more than double the bank's value of $5.7 million, The New York Times reported. /p>
FTX's ownership of Moonstone is seen as a means of circumventing the requirements of possessing a banking license in the United States, which many believe is quite a complex task.
One Reddit user wrote that it takes a lot of work to get a banking license, and so "buying a small bank is often a back door to getting a license, which would be a natural part of getting a license." 'a business plan for something like FTX."
Another user pointed to the perceived misuse of banking loopholes and lack of regulatory oversight over crypto. Others have speculated that Sam Bankman-Fried's political connections may also have played a part in the deal and said:
"With the number of political connections SBF had, I also wouldn't be surprised if he just got that license for no reason."
In addition to FTX's stake in a US bank,...
Rural bank chairman Jean Chalopin is also chairman of Deltec Bank, which has Tether and Alameda on its list of clients.
New
The bankruptcy proceedings of cryptocurrency exchange FTX have revealed many new aspects of its unethical practices. The latest revelation about his stake in one of the smallest US banks in the Washington campaign has raised new concerns about his operations and the alleged misuse of bank loopholes.
Farmington State Bank in Washington State, now renamed Moonstone, is the 26th smallest bank in the United States with one branch and three employees. FTX invested in the rural bank through its now-bankrupt sister company Alameda with an $11.5 million investment in its parent company FBH in March 2022. Alameda's investment represented more than double the bank's value of $5.7 million, The New York Times reported. /p>
FTX's ownership of Moonstone is seen as a means of circumventing the requirements of possessing a banking license in the United States, which many believe is quite a complex task.
One Reddit user wrote that it takes a lot of work to get a banking license, and so "buying a small bank is often a back door to getting a license, which would be a natural part of getting a license." 'a business plan for something like FTX."
Another user pointed to the perceived misuse of banking loopholes and lack of regulatory oversight over crypto. Others have speculated that Sam Bankman-Fried's political connections may also have played a part in the deal and said:
"With the number of political connections SBF had, I also wouldn't be surprised if he just got that license for no reason."
In addition to FTX's stake in a US bank,...
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