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News Explorer — FTX-linked Farmington State Bank Ordered to Wind Down Operations

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Aug 17, 4:20 pm
Coindesk

FTX-linked Farmington State Bank Ordered to Wind Down Operations

The Federal Reserve Board has ordered FTX-linked Farmington State Bank to wind down its operations after engaging in digital assets-related activities without notifying or obtaining approval from supervisors. The joint enforcement action from the Federal Reserve Board and the Washington State Department of Financial Institutions restricts the bank from making dividends or capital distributions and engaging in certain activities without permission. Farmington had previously agreed to avoid digital bank operations and modify its business plan but allegedly worked with a third party to facilitate the issuance of stablecoins.

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