FTX-Linked Farmington State Bank Slapped with Fed Enforcement Action

Farmington, which operates below its Moonstone Financial institution identify, “improperly” pivoted to a pro-digital belongings marketing strategy in 2022 with out notifying, and acquiring approval from, its supervisors, the doc stated. The joint enforcement motion from the Federal Reserve Board and the Washington State Division of Monetary Establishments bars the Washington state-based financial institution from “making dividends or capital distributions, dissipating money belongings and fascinating in sure actions” with out its supervisors’ permission.