Federal Reserve Ends Enforcement Action Against Farmington Bank Linked to Sam Bankman-Fried
- The Federal Reserve has concluded its enforcement action against Farmington Bank, previously linked to Sam Bankman-Fried.
- Farmington Bank wound down its operations, leading to the termination of the enforcement action, which had been in effect since July 2023.
- The enforcement action was initiated when the Fed accused Farmington of improperly changing its business model without informing the central bank.
- FBH Corporation, the bank's holding company, was also named in the enforcement action, which has now been terminated.
- Farmington had committed to designing IT infrastructure and facilitating the issuance of stablecoins in exchange for a portion of mint and burn fees on certain stablecoins.
- The bank operated briefly under the name Moonstone Bank and had ties to Alameda and Sam Bankman-Fried, though both were absent from the enforcement action.
- Alameda had invested $11.5 million into Farmington Bank.
- Last year, Farmington Bank announced a strategy shift, changing its name back and discontinuing its pursuit of an innovation-driven business model, reflecting the impact of recent events in the crypto assets industry and evolving regulatory dynamics.
