Crypto-Friendly Bank Custodia Bank Laid Off Nine Employees Due to Lawsuit with the Fed
Publication Time:2024-08-30 08:41:07
On August 30th, leading financial media outlet Fox Business reported that Custodia Bank decided to cut nine of its 36 staff members in an effort to conserve vital capital during its legal tussle with the US central bank. This comes amidst a legal disagreement between the bank and the Federal Reserve System over access to a primary account. A primary account allows state-chartered financial institutions to utilize the liquidity resources of the Federal Reserve, including payment services. Without a primary account, the bank would have to rely on other financial institutions that already possess one for its operations, typically resulting in higher cost implications.
Custodia Bank
Crypto Regulation
Crypto bank
Layoffs
Fed lawsuit