Crypto

Moonstone Bank Linked to FTX to Exit Crypto Space

Moonstone Bank, a rural Washington state bank that received an estimated $11.5 million investment from FTX sister company Alameda Research, said it will exit the crypto space and return to its “ original mission” as a community bank.

In a January 18 statementthe bank said the change in strategy resulted from “recent events in the crypto asset industry and the evolving regulatory environment surrounding crypto asset businesses.”

As part of the bank’s initiative to “go back to its roots”, it said it would no longer use the Moonstone Bank name and would rebrand and revert to the Farmington State Bank name. , known in the local community for 135 years.

According to the bank, the change is expected to come into effect in the coming weeks and local bank customers will not experience any disruption in services.

Although the bank did not explicitly cite FTX’s collapse as part of its decision to restrategize and rebrand, it is understood that these events may be linked.

Moonstone Bank was reportedly acquired in 2020 by Jean Chalopin, the president of Bahamas-based Deltec, which is another FTX banking partner. Chalopin reportedly secured an $11.5 million investment from Alameda Research in January 2022 to turn Moonstone into a crypto-focused financial services company.

Related: Silvergate Sells Assets at a Loss, Cuts Workforce to Cover $8.1 Billion in Withdrawals: Report

Farmington State Bank appears to be on the growing list of banks affected by FTX’s sudden implosion.

On January 5, Cointelegraph reported that the FTX debacle had triggered a bank run on Silvergate, forcing the company to sell its assets at a loss and cut its workforce by 40% to cover $8.1 billion in customer withdrawals. As a result, Silvergate laid off approximately 200 employees, or 40% of its total workforce. Additionally, the bank canceled plans to launch its own digital currency project.