MoonStone Bank Says FTX Deposits Are Safe

Key Points:

• FTX accounts held by MoonStone Bank remain safe.
• The bank has enough liquidity to support withdrawals.
• FTX deposits will be transferred by court order.

Given the fact that the Bahamas general temporary liquidators filed a petition with the Delaware Bankruptcy Court on December 23, 2022 to disclose the FTX account held by MoonStone Bank.

In a statement updating its situation, the renamed Moonstone Bank from the former Farmington State Bank of the United States issued a statement reiterating that FTX deposits are safe and the bank has enough liquidity to support withdrawals. The FTX deposit in question is safe and it is clear from the most recently published Call Report that there is more than enough liquidity, equal to sold Fed Funds, to cover the deposit.

In addition, MoonStone Bank also stated that it has taken action to suspend FTX accounts and is in contact with FTX creditors and Bahamas General Interim Liquidator.

The bank also confirmed it will comply with the order of the Delaware bankruptcy court to transfer FTX deposits The bankruptcy court has filed a motion seeking clear direction.

“We look forward to an order from the Delaware Bankruptcy Court, which should tell us exactly where to transfer the FTX deposit. Our sole concern has been to have a clear direction on who, the FTX debtor-in-possession or the Bahamian Joint Provisional Liquidator, is entitled to the deposit, because we cannot be put in a position to pay the deposit back twice. We intend to file a motion with the Delaware Bankruptcy Court asking for clear direction.”

As was updated in an earlier Coincu News article, as reported by The New York Times, FTX’s bankruptcy exposed some “exotic” assets and their relationship with the US State Bank of Farmington is under investigation, now renamed MoonStone.

According to the update, in March of this year, Alameda Research invested $11.5 million in this bank and bought its shares. Currently, the bank has one branch and $84 million in deposits, of which $71 million has been stored in four accounts.

Moonstone Bank is a Washington State bank that specializes in catering to Small and Medium Enterprises (SMEs) and consumers with technology-driven solutions for consumer and commercial banking.

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