### A report by the New York Times raises questions about FTX's acquisition of a U.S-licensed bank.

 A [report](https://www.nytimes.com/2022/11/23/business/ftx-cryptocurrency-bank.html) by the New York Times describes the unusual ties between cryptocurrency exchange FTX and one of the smallest banks in the United States. 


FTX’s bankruptcy proceedings showed that FTX owns a stake in Farmington State Bank in Washington State. The NYT says this bank has a single branch, only employs three people, and does not offer a credit card or online services. 


In March, Alameda Research, a trading firm associated with FTX, invested $11.5 million in Farmington’s parent company, FBH. The deal was led by Ramnik Arora, a close associate of FTX founder Sam Bankman-Fried.


According to financial regulators, this investment was more than double Farmington’s net worth, which was valued at only $5.7 million.


In addition, Farmington’s deposits made an unusual jump after the investment. It had an average of about $10 million for a decade but turned in $84 million in the third quarter of this year. The NYT notes that this figure represents an increase of about 600%. $71 million of Farmington’s deposits came from just four new accounts.


The report also traces Farmington’s history, showing that its crypto connection goes beyond FTX. FBH’s chairman is Jean Chalopin, who is also the chairman of Deltec Bank. Deltec Bank is based in the Bahamas like FTX and deals with Tether, a crypto company with $65 billion in assets. 


Farmington is now known as Moonstone Bank, a name trademarked just days before FTX’s investment. Although Moonstone’s website does not refer to cryptocurrencies, it says it supports “the evolution of next generation finance.”


The NYT report notes that it is unclear how FTX was able to gain control of Farmington, which requires the approval of federal regulators. 

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