[Crypto-friendly bank Custodia Bank lays off employees to preserve capital in ongoing litigation with the Federal Reserve] On August 30, Fox Business reported that the Biden administration's regulatory crackdown on cryptocurrencies has led to a major reorganization of a small but high-profile crypto bank. The media learned that Custodia Bank, a Wyoming financial institution that provides banking services to cryptocurrency companies, notified employees on Thursday morning that it would lay off 9 of its 36 employees to preserve capital in its court battle with the U.S. central bank. The layoffs come as Custodia is embroiled in a legal dispute with the Federal Reserve, which is competing with the Fed for a so-called master account that allows state-chartered institutions to use the Fed's liquidity facilities, including payment services. Without a master account, banks are forced to conduct business through other institutions that have master accounts, which often incurs high costs.