Following the downfall of FTX, Moonstone Bank, the rural Washington State Bank has decided to exit rebrand and exit the crypto space.
The company received an estimated investment worth $11.5 Million from FTX’s sister company named Alameda Research. The institution stated that it would exit crypto space for returning to its “fundamental mission” as a community bank.
As per its statement on January 18, the company plans to change its strategy as a result of “recent unfavorable events in the crypto assets industry and also the changing regulatory approach in the crypto ecosystem.”
To “return to its roots,” the bank stated that it will longer use the name “Moonstone Bank “but instead will rebrand and readopt its original name, “Farmington State Bank” popular in the local community for 135 years.
However, the bank has not cited the collapse of FTX as a reason for its decision. Reportedly bank will the enforce changes in the upcoming week and would ensure that local banking customers do not experience any disruption of services.
Presently known as “Moonstone Bank” it was reportedly acquired by Jean Chalopin, the Chairman of Deltech, an another banking partner of FTX in the Bahamas. In January 2022, he secured an 11.5 Million Investment from Alameda Research to transform Moonstone into a crypto–focused financial services company. However, the changing notion of the bank came as a shock to all.
However, to the market experts, Farmington State Bank appears to be on the increasing list of banks that got affected by the sudden implosion of FTX.