Moonstone Bank is Closing the Accounts of its Crypto Clients to ’Refocus on Community Bank Role’
Yet another worrying sign that, at least in the USA, crypto winter could be pushed into a crypto freeze.
In a December court filing, Bahamas liquidators revealed that Moonstone held nearly $50 million in FTX funds across two accounts, the status of which is unknown. Moonstone executives have allegedly declined to provide Bahamian investigators with details about the accounts when asked to do so.
That's funny - so much for toothless regulators.
But the trend is wider.
Silvergate Bank Suffers Run on Deposits as $8.1 Billion is Withdrawn - Will it Go Bust?
According to a Thursday [5 January 2023] report by the Wall Street Journal, the crypto bank had to sell $5.2 billion of debt securities it was holding on its balance sheet to cover around $8.1 billion in user withdrawals. As a result, it incurred a $718 million loss, which reportedly exceeds the bank’s total profits since 2013.
Those FTX baits are now been reeled in.
Signature Bank taps Home Loan bank advances in crypto pullback
This may be more significant than the crypto chaos caused by FTX - scaring away mainstream banks.
something I've also said many times: that crypto can be quarantined, even if the tech cannot be shut down.