1/
#FTX owned an $11.5M stake in a tiny rural bank in Washington state with just 3 employees
Farmington State Bank in the state of Washington (Farmington town has 146 people), now renamed Moonstone, is the 26th smallest bank in the US.
It has a single branch and 3 employees.
#FTX owned an $11.5M stake in a tiny rural bank in Washington state with just 3 employees
Farmington State Bank in the state of Washington (Farmington town has 146 people), now renamed Moonstone, is the 26th smallest bank in the US.
It has a single branch and 3 employees.
2/
#FTX invested in the rural bank through Alameda, with an investment of $11.5M for 10% of the bank in its parent company FBH in March 2022.
The #AlamedaResearch investment was more than double the bank’s value of $5.7M.
#FTX invested in the rural bank through Alameda, with an investment of $11.5M for 10% of the bank in its parent company FBH in March 2022.
The #AlamedaResearch investment was more than double the bank’s value of $5.7M.
3/
To put this into perspective #FTX’s investment valued the bank at $115M. Yet, it only had $10M in customer deposits
Why did they do that?
To put this into perspective #FTX’s investment valued the bank at $115M. Yet, it only had $10M in customer deposits
Why did they do that?
4/
Well, FTX’s ownership in #Moonstone was mainly because they could #bypass the requirements of owning a banking license in the US, which is actually a super complex task.
That said, money laundering appears to have been FTX’s actual stock in trade
Well, FTX’s ownership in #Moonstone was mainly because they could #bypass the requirements of owning a banking license in the US, which is actually a super complex task.
That said, money laundering appears to have been FTX’s actual stock in trade
5/
FTX was supposedly worth $32 billion, it was backed by top-tier VCs and grew into one of the biggest digital asset exchanges in the world.
It now seems that it's the biggest fraud case of all time.
FTX was supposedly worth $32 billion, it was backed by top-tier VCs and grew into one of the biggest digital asset exchanges in the world.
It now seems that it's the biggest fraud case of all time.
6/
Now... HOW IN HELL this can be a #crypto problem not to mention a #Bitcoin problem?
Why to we need #RULES for #CRYPTO if we don't have them for BUYING a BANK ??
Now... HOW IN HELL this can be a #crypto problem not to mention a #Bitcoin problem?
Why to we need #RULES for #CRYPTO if we don't have them for BUYING a BANK ??
7/
If in the "regulated bank world" a scammer can BUY A BANK this way without letting any alarm off, it clearly shows that RULES DON'T MATTER, they are worthless, prevent nothing.
If those are the rule, we don't need any
If in the "regulated bank world" a scammer can BUY A BANK this way without letting any alarm off, it clearly shows that RULES DON'T MATTER, they are worthless, prevent nothing.
If those are the rule, we don't need any
• • •
Missing some Tweet in this thread? You can try to
force a refresh
