A statement that aired out on 17th August says that Farmington Bank has been forced to discontinue all operations that involve Alameda research done by Sam Bankman. According to Bitcoin News, Alameda had made an investment worth 11.5 million in the bank.
The Alameda Research Comes To An End
On July 18th, the US central bank put out an order for the Moonstone Bank to stop operations entailing the Alameda research. The order was also issued to FBH Corporation of Baltimore, Maryland as Bitcoin news reports.
The regulators responsible for this action found Moonstone guilty of doing things without their approval. For instance, Moonstone Bank had been providing stablecoins to cryptocurrency investors interested in their work. They had supposedly agreed to do this in exchange for a certain amount that would benefit them.
Dividends that were to be paid out by the bank will now be on hold as the order states. Stock investors could grow rather frustrated and this could lead to a negative market sentiment for the bank. The bank will not engage in unauthorized activities until given permission to do so.
A press release that aired out on the 17th has proved that the bank is in line with the orders given by the FDI and WDFI.
Farmington is one of the many banks paying the consequences as a result of playing games with Sam Bankman who is currently awaiting trial in October. The future of the bank is at stake and otherwise, could experience a whole lot of retrogression.
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