{"id":292101,"date":"2023-01-25T11:20:34","date_gmt":"2023-01-25T11:20:34","guid":{"rendered":"https:\/\/cryptoslate.com\/?p=292101"},"modified":"2023-08-06T17:18:39","modified_gmt":"2023-08-06T16:18:39","slug":"prosecutors-seize-sbfs-50m-deposit-to-small-bank","status":"publish","type":"post","link":"https:\/\/cryptoslate.com\/prosecutors-seize-sbfs-50m-deposit-to-small-bank\/","title":{"rendered":"Prosecutors seize SBF&#8217;s $50M deposit to small bank"},"content":{"rendered":"<p>Prosecutors seized just under $50 million belonging to <a href=\"https:\/\/cryptoslate.com\/companies\/ftx\/\">FTX<\/a> founder Sam Bankman-Fried (<a href=\"https:\/\/cryptoslate.com\/people\/sam-bankman-fried\/\">SBF<\/a>) held in Farmington State Bank on Jan. 4, according to a Yahoo Finance (YF) report on Jan. 24.<\/p>\n<p>The total amount seized was only $500 short of $50 million, according to the YF <a href=\"https:\/\/finance.yahoo.com\/news\/sbf-held-50-million-tiny-143903941.html?guccounter=1\">report<\/a>. The bank specialized in agricultural loans to farmers and had only three employees when SBF deposited this amount. It also didn't offer online banking services or credit cards and had a net worth of $5.7 million.<\/p>\n<h2>Alameda invests in Farmington<\/h2>\n<p>SBF's venture capital <a href=\"https:\/\/cryptoslate.com\/companies\/alameda-research\/\">Alameda Research<\/a> invested $11.5 million in the bank in March 2022, according to a New York Times (NYT) <a href=\"https:\/\/www.nytimes.com\/2022\/11\/23\/business\/ftx-cryptocurrency-bank.html\">report<\/a> published in November 2022,<\/p>\n<p>Farmington has been steadily collecting about $10 million in deposits for a decade \u2014 by the third quarter of 2022, this amount increased to $84 million, according to the NYT report. Of this increase, $71 million came from new accounts.<\/p>\n<p>The bank also changed its name to Moonstone Bank and started offering online banking services after FTX's investment, according to the NYT report.<\/p>\n<p>The former head of the Independent Community Bankers of America, Camden Fine, reportedly shared his thoughts about the investment, according to the NYT report. He said:<\/p>\n<blockquote><p>\u201cThe fact that an offshore hedge fund that was basically a crypto firm was buying a stake in a tiny bank for multiples of its stated book value should have raised massive red flags for the F.D.I.C., state regulators and the Federal Reserve. It\u2019s just astonishing that all of this got approved.\u201d<\/p><\/blockquote>\n","protected":false},"excerpt":{"rendered":"<p>Prosecutors seized just under $50 million belonging to FTX founder Sam Bankman-Fried (SBF) held in Farmington State Bank on Jan. 4, according to a Yahoo Finance (YF) report on Jan. 24. The total amount seized was only $500 short of $50 million, according to the YF report. The bank specialized in agricultural loans to farmers [&hellip;]<\/p>\n","protected":false},"author":1262,"featured_media":305275,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[39,60793],"tags":[],"prediction_market_topic":[],"post_folder":[],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v21.9 (Yoast SEO v21.9.1) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Prosecutors seize SBF&#039;s $50M deposit to small bank<\/title>\n<meta name=\"description\" content=\"Roughly $50 million of SBF&#039;s deposit has been seized by prosecutors \u2013 Alameda invested $11.5 million earlier in the same bank.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/cryptoslate.com\/prosecutors-seize-sbfs-50m-deposit-to-small-bank\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Prosecutors seize SBF&#039;s $50M deposit to small bank\" \/>\n<meta property=\"og:description\" content=\"Roughly $50 million of SBF&#039;s deposit has been seized by prosecutors \u2013 Alameda invested $11.5 million earlier in the same bank.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/cryptoslate.com\/prosecutors-seize-sbfs-50m-deposit-to-small-bank\/\" \/>\n<meta property=\"og:site_name\" content=\"CryptoSlate\" \/>\n<meta property=\"article:published_time\" content=\"2023-01-25T11:20:34+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-08-06T16:18:39+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/03\/ftx-money.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"630\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Zeynep Geylan\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@cryptoslate\" \/>\n<meta name=\"twitter:site\" content=\"@cryptoslate\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Zeynep Geylan\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"NewsArticle\",\"@id\":\"https:\/\/cryptoslate.com\/prosecutors-seize-sbfs-50m-deposit-to-small-bank\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/cryptoslate.com\/prosecutors-seize-sbfs-50m-deposit-to-small-bank\/\"},\"author\":{\"@type\":\"Person\",\"@id\":\"https:\/\/cryptoslate.com\/author\/zeynep-geylan\/#person\",\"name\":\"Zeynep Geylan\",\"url\":\"https:\/\/cryptoslate.com\/author\/zeynep-geylan\/\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/cryptoslate.com\/author\/zeynep-geylan\/\"},\"image\":{\"@type\":\"ImageObject\",\"@id\":\"https:\/\/cryptoslate.com\/author\/zeynep-geylan\/#authorimage\",\"url\":\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2022\/03\/zeynep-geylan-author-300x300.jpg\",\"contentUrl\":\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2022\/03\/zeynep-geylan-author-300x300.jpg\",\"caption\":\"Zeynep Geylan\"},\"jobTitle\":\"Journalist\",\"description\":\"Zeynep is an academic who turned to crypto in 2018. 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