Alameda Research Invested $11.5 Million In The Parent Company Of Farmington State Bank
After it was discovered that Alameda Research invested $11.5 million in one of America’s smallest banks, which is more than doubling the bank’s prior net worth, FTX came under more significant investigation.
According to NYT, Farmington State Bank in Washington State has a single branch with just three employees. It did not even offer online banking or even a credit card. Additionally, the bank was the nation’s 26th-smallest bank out of 4,800 while its net worth was $5.7 million which is half of the FTX’s investment.
The bank and FTX started working together in March of this year after Alameda Research, FTX’s sister firm, made an investment in Farmington’s parent company, FBH. Ramnik Arora, a member of Sam Bankman-inner Fried’s circle was in charge of the purchase.
For a decade, Farmington’s deposits had remained constant at around $10 million. Nevertheless, the bank’s deposits increased by roughly 600% to $84 million in the third quarter of this year, $71 Million of which came from just four accounts, according to F.D.I.C data cited by the Times.
Farmington is currently known as Moonstone Bank online. A few days before FTX’s investment, the name was trademarked.
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