TETHER’S BANK FORGED A LUCRATIVE RELATIONSHIP WITH FTX In late 2021, Bahamian bank Deltec was well on its way to becoming one of the world’s most consequential crypto banks—but it needed money. Born from private wealth management, the bank found a profitable, yet risky new role as the banker of choice for crypto giants. After signing on Tether, a wildly popular stablecoin that had been dropped by traditional financiers, Deltec amassed a roster of white-hot clients, including FTX. Amid the dollar signs surrounding his new client, Deltec chairman Jean Chalopin saw an answer to his funding woes. In October 2021, he secured a $50 million loan from an entity connected to FTX through one of its executives; the entity’s ties to FTX and its loan to Deltec have not been previously reported. In addition to the loan to Deltec, Alameda invested in Moonstone Bank, owned by Chalopin through a holding company. In a December court filing, Bahamas liquidators revealed the Washington state bank held nearly $50 million in FTX funds across two accounts, appearing to make the exchange its largest customer, and Alameda its largest investor. Read more here. This week, Moonstone began notifying crypto clients it plans to close their accounts. According to interviews and documentation provided to Forbes by individuals associated with Moonstone, the bank had several dozen crypto customers as of this month. It’s unclear how many of those clients were told their accounts would be terminated. |