Cryptocurrency

FTX-linked Moonstone Bank is closing its clients’ cryptocurrency accounts

Hull Invest

A rural Washington bank with extensive ties to FTX is closing its customers’ cryptocurrency accounts. forbes report January 19th.

Forbes said, based on communications it received, Moonstone has notified customers that it plans to close their accounts. Moonstone reportedly asked the client to close the deal and move the funds to another institution.

According to today’s report, the company only has a few dozen cryptocurrency customers. Account closures don’t seem to extend to traditional accounts.

Following Forbes report, Moonstone official announcement Plan to discontinue providing cryptographic services. Despite high-value deals with FTX, the physical location of the bank is Incredibly small and discreetas such, the company said it would function as a community bank and would rebrand to its former name, Farmington State Bank.

Forbes pointed out that Moonstone did not explicitly state that the account closure was related to the collapse of FTX. However, the company hinted at “recent events in the cryptocurrency industry.”

Moonstone itself had direct ties with FTX and Alameda Research. Most notably, in January 2022, he received an investment of $11.5 million from Alameda.

The bank owner made further deals with FTX. Deltec Bank & Trust Chairman Jean Chalopin acquired Moonstone in 2020, transforming the company into a crypto-focused bank. In addition to arranging the investment in Almeda, Chalopin received his $50 million loan from Norton Hall Ltd. (a company affiliated with FTX DM co-CEO Ryan Salame). Otherwise, FTX and Chalopin maintained a close relationship, Forbes suggests.

FTX also had $50 million in deposits in two Moonstone accounts at one point.

Moonstone is just one of the banks affected by the FTX collapse. Silvergate Bank, Signature Bank, and Metropolitan Commercial Bank all appeared to be affected by the collapse, but some were more affected than others.

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