According to TechFlow, the U.S. Federal Reserve issued a cease and desist order to the crypto-friendly bank United Texas Bank, pointing out that the bank had "significant deficiencies" in its risk management system and crypto customer business.

The Fed's May inspection found problems with the bank's corporate governance structure and "negligence" by its board and senior management.

The main deficiencies relate to foreign correspondent banking and virtual currency customers, particularly in the areas of risk management and compliance with anti-money laundering regulations.

United Texas Bank, which has 75 employees and manages about $1 billion in assets, has taken steps to strengthen its compliance with the Bank Secrecy Act and anti-money laundering program and agreed to submit a formal plan to enhance board oversight.

It is worth noting that the Federal Reserve took similar action against another crypto-friendly bank, Customers Bancorp, in August. Dan Spuller, director of affairs at the Blockchain Association, believes that this is a continuation of "Operation Cutoff 2.0," suggesting that the government may be coordinating to prevent banks from cooperating with the crypto industry.