Crypto Firm FTX’s Ownership of a U.S. Bank Raises Questions

Crypto-Firm-FTX’s-Ownership-of-a-U.S
  • The troubled FTX ownership of a U.S. bank has raised queries.
  • Farmington State Bank and FTX started working together in March.
  • Farmington is connected to many crypto networks.

The most current records indicate that FTX made an $11.5 million investment via a subsidiary in Farmington State Bank’s parent business. This bank reportedly only has one location and three staff as of this year.

The relationship between the minor bank and FTX’s demise has led to additional queries regarding the exchange and its workings. Among them: How integrated into the larger financial system is FTX, which has its headquarters in the Bahamas? What more might the authorities have missed? How will Farmington become involved in the massive bankruptcy while searching for FTX’s lost assets?

It is important to note that Farmington State Bank and FTX started working together in March. This was when Alameda Research, a little trading business and sister company of FTX, invested $11.5 million in FBH, the bank’s parent company.

Out of 4,800 banks in the country at the time, Farmington was the 26th-smallest bank. According to the Federal Deposit Insurance Corporation, it had a net worth of $5.7 million.

Farmington is connected to many crypto networks. The bank was purchased by FBH in 2020. Jean Chalopin, the chairman of Deltec Bank, which, like FTX, is domiciled in the Bahamas, and a co-creator of the 1980s cartoon cop Inspector Gadget, is also the chairman of FBH. The most well-known customer of Deltec is Tether, a cryptocurrency corporation with $65 billion in assets that provides a stablecoin tied to the dollar.

Because of its reclusive founders and offshore bank accounts, Tether has long faced financial problems. FTX was one of Tether’s biggest trading partners through Alameda. 

This led to worries that the stablecoin would be connected to FTX’s fraudulent activities without anybody being aware of it. It is to be seen how the crypto community reacts to the allegations and queries as well as the ongoing turmoil situation.

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Godfrey Mwirigi is an enthusiastic crypto writer with an interest in Bitcoin, blockchain, and technical analysis. With a focus on daily market analysis, his research helps traders and investors alike. His particular interest in digital wallets and blockchain aids his audience in their day-to-day endeavors.

programmer & freelance writer