Texas Fed Issues Cease and Desist Order Against a Crypto Bank

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According to the Federal Reserve, United Texas Bank, which has connections to the cryptocurrency industry, was found to have “significant deficiencies” related to its handling of crypto customers and risk management.

In an examination conducted in May 2023, the central bank discovered shortcomings in the bank’s governance and oversight by its board of directors and senior management.

This led to a cease and desist order being issued on Wednesday, which both the Fed and the bank agreed to.

The order stated that the bank exhibited significant deficiencies in its management of foreign correspondent banking and virtual currency customers, specifically in regards to complying with laws and regulations related to anti-money laundering.

The bank has since taken steps to improve its Bank Secrecy Act and anti-money laundering program.