Home CryptocurrencyBitcoin Moonstone Bank Joins FTX To Exit Cryptospace

Moonstone Bank Joins FTX To Exit Cryptospace

by SuperiorInvest

Moonstone Bank, a rural Washington bank that received an estimated $11.5 million investment from FTX sister company Alameda Research, says it will exit the crypto space and return to its “original mission” as a community bank.

On January 18 claimThe bank said the change in strategy comes as a result of “recent developments in the crypto-asset industry and the changing regulatory environment surrounding crypto-asset trading.”

As part of the bank’s “return to roots” initiative, the bank said it will no longer use the Moonstone Bank name and will rebrand and re-adopt the Farmington State Bank name, known in the local community for 135 years.

According to the bank, the change is expected to take effect in the coming weeks and local banking customers will not experience any service disruption.

Although the bank did not directly cite the collapse of FTX as part of its decision to change strategy and rebrand, it is clear that these events may be linked.

Moonstone Bank was reportedly acquired in 2020 by Jean Chalopin, chairman of Bahamas-based Deltec, another FTX banking partner. Chalopin reportedly secured an $11.5 million investment from Alameda Research in January 2022 to transform Moonstone into a cryptocurrency-focused financial services company.

Related: Silvergate sells assets at a loss, cuts staff to cover $8.1 billion in withdrawals: Report

Farmington State Bank appears to be on the growing list of banks affected by FTX’s sudden implosion.

On January 5, Cointelegraph reported that the FTX debacle had occurred started a bank run on Silvergate, which caused the company to sell its assets at a loss and cut staff by 40% to cover $8.1 billion in customer withdrawals. As a result, Silvergate laid off about 200 employees, which was 40% of its total workforce. In addition, the bank canceled its plan to launch its own digital currency project.

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