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Photos: Here’s Why FTX Poured Nearly $12 million Into This Tiny Bank With 3 Employees In Middle-Of-Nowhere Washington State

Following the signing of FTX’s chapter 11 bankruptcy, the failed crypto mogul Sam Bankman-Fried has been going around town to explain his side and attempt restore his reputation.

But, documents never lie. In the bankruptcy proceedings, one of the assets revealed to be owned by FTX is the curiousity-inducing small bank in the state of Washington.

How small? The Farmington State Bank has a single location and only three staff as of this year. It didn’t even have online banking or a credit card.

In March, FTX’s sister hedge fun Alameda Research spent $11.5 million on Farmington State Bank’s parent company, FBH. According to the Federal Deposit Insurance Corporation, the bank’s net worth was $5.7 million; it was the 26th-smallest bank in the country out of 4,800 at the time of the investment.

But it is not only the peculiar stake that raised some questions. Back in 2020, Farmington State Bank was acquired by FBH whose chairman was Jean Chalopin. He is also the chairman of Deltec Bank, which, like FTX, is based in the Bahamas–but its most well-known client is a $65-billion crypto firm called Tether.

Photos from the bank below:


There’s even more weird crypto drama swirling around all of this, but before you learn more about it, just a gentle reminder that it’s all centered on one tiny bank in this town:

Alameda bought a US bank (Farmington State) connected with Deltec and Tether, and then transferred it to FTX.

There’s no way that the regulatory approval of a Bahamian HF buying a US bank was legit. No way.

FTX was a criminal enterprise from the start.

Here’s the letter from SF Fed prez Mary Daly approving Fed Reserve System membership (SWIFT and wires) for the bank that SBF bought.

That’s Deltec Chairman Jean Chalopin on the Board, as is Gemini Chief Compliance/Operating Officer Noah Perlman.

Photo below:

I think we found out why they bought this bank!

Farmington’s deposits had remained stable at around $10 million for a decade prior to the acquisition. However, the bank’s deposits increased about 600% to $84 million in the third quarter of this year, presumably after the Alameda investment.

According to FDIC records, nearly all of that increase, $71 million, came from just four new accounts.

The bank is currently known as Moonstone Bank online and its website makes no mention of Bitcoin or other digital currency, except to claim a desire to help “the evolution of next-generation finance.”

So to summarize: we have a bank that was bought illegally so that people involved in this scheme can launder their money without problems!

(This post may contain disputed claims. We make no assertions as to the validity of the information presented by our Opinion Columnist. This is an opinion article, and this post should be treated as such. Enjoy.)