| On FTX Wreck
Federal Reserve FOIAed by on Moonstone
Bank & Others By Inner City Press
By Matthew
Russell Lee, Patreon
SDNY COURTHOUSE,
Dec 22 – Amid the prosecution
of Samuel Bankman-Fried on
wire fraud, money laundering
and campaign finance violation
charges, the role of the
Federal Reserve is coming to
the fore.
Inner City
Press was unsurprised to learn
of Fed laxity as Alameda
invested in Farmington State
Bank, renamed Moonstone Bank.
Inner City Press
submitted to the Federal
Reserve a Freedom of Information
Act request including: "This
is a FOIA request for all
record regarding the FRS'
approval for the application /
request for membership in the
Federal Reserve System by
Farmington State Bank (giving
rise to FRBSF president Daly's
approval on a delegated basis
in 2021), and the subsequent
renaming of the bank to
Mooonstone and taking of a
stake by FTX/Alameda.
Also, for Silvergate with its
FTX connections, record
reflecting any review by the
FRS of Silvergate's (and
Provident Bancorp Inc.,
Metropolitan Commercial Bank,
Signature Bank, Customers
Bancorp Inc.) of the banks'
connections with
crypto-currency firms... This
is a request for expedited
treatment, in light of the
indictment of FTX / Alameda's
Sam Bankman-Fried and Caroline
Ellison (cooperating), and an
upcoming January 3, 2023
hearing."
The Federal Reserve
has so far acknowledged
receipt: "Your request has
been assigned number
FOIA-2023-00178. Please
reference this number in all
future
correspondence.
Request description:
This is a FOIA request for all
record regarding the FRS'
approval for the application /
request for membership in the
Federal Reserve System by
Farmington State Bank [also]
any review by the FRS of
Silvergate's (and Provident
Bancorp Inc., Metropolitan
Commercial Bank, Signature
Bank, Customers Bancorp Inc.)
of the banks' connections with
crypto-currency firms."
There is also a
lawsuit in Federal court in
California asserting
that
"Silvergate,
a publicly traded and
federally regulated bank
catering to cryptocurrency
customers, maintained both FTX
and Alameda accounts. It
directly aided and abetted
FTX’s fraud and breaches of
fiduciary duty via first-hand
participation in the
commingling of funds, improper
transfers, and lending out of
customer money. Silvergate
processed billions in
transfers from FTX’s client
account at Silvergate to the
Alameda accounts. Silvergate
also accepted deposits from
FTX investors—intended to be
stored, traded, or cashed
out—that at Bankman-Fried’s
direction were wired straight
to Alameda bank accounts and
misused."
So both
banks are with the Fed? Which
is rubberstamping mergers by
redliners?
Samuel
Bankman-Fried case(s), we will
have more on this
***
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