Crypto Firm FTX’s Ownership of a U.S. Bank Raises Question
Credit : getty images
Author - joshai
One of the many assets that were discovered in the bankruptcy of cryptocurrency exchange FTX was a small stake in one of the country's smallest banks.
Farmington State Bank, Washington State, only has one branch. It currently has three employees. It didn't offer online banking or a credit card
New questions are being raised about the operation of FTX and the connection between the tiny bank and the collapse of FTX
Among them: How close is FTX, which was based in the Bahamas, to the wider financial system?
What other potential omissions might regulators have made? How will Farmington be dragged into multibillion-dollar bankruptcy proceedings as a result of the search for FTX's assets missing?
Alameda Research, a smaller trading firm that is sister to FTX invested $ 11.5 million in Farmington State Bank in March
Farmington, out of 4800 banks in the country, was the 26th largest bank at the time. According to the Federal Deposit Insurance Corporation, its net worth was $5.7million