The Federal Reserve terminated an enforcement action with Farmington State Bank in Washington.
The Fed said that it ended the July 2023 enforcement action because Farmington, which once had ties to collapsed crypto exchange FTX, had “completed its wind-down plan and no longer functions as a bank.”
Farmington gained notoriety when it rebranded as Moonstone Bank and began dealing in crypto. It was later disclosed that the bank had received an $11.5 million investment from an FTX affiliate.
The bank eventually scrapped the Moonstone brand and exited the crypto business.
Farmington agreed in January 2023 to sell certain assets and deposits to Bank of Eastern Oregon.