July 2022 Crypto Conference Call
MEMORANDUM TO FILE
DATE:
July 26, 2022
TO:
Files
THROUGH:
Catherine H. Goñi
Assistant Regional Director
XXXXX
Case Manager
FROM:
XXXXX
Trust Examination Specialist
SUBJECT:
XXXXX Crypto Related Assets Conference Call - Update
Attendees:
FDIC
XXXXX
Trust Examination Specialist (TES)
XXXXX
XXXXX
SVP & Wealth Manager
Operations Manager
On 7/21/2022, a conference call was held with trust department management to obtain an update on the previously reported (4/11/22 & 6/30/2022) crypto-related holdings held in client accounts. The call was intended to obtain clarification on the assets and clients reported in the 6/30/2022 letter and request the retention letters previously requested on the 6/28/2022 conference call.
Operations Manager XXXXX stated that the 4/11/2022 and 6/30/2022 correspondence to the FDIC and subsequent discussions inadvertently excluded a client directed holding in XXXXX XXXXX held in the XXXXX account. SVP XXXXX clarified that there are currently three clients XXXXX XXXXX XXXXX that hold XXXXX crypto-related holdings. The crypto-related holdings are detailed on the table below.
TES XXXXX requested the bank provide the FDIC with retention letters for all XXXXX clients to substantiate they were client-directed purchases and are being retained with client direction. Operations Manager XXXXX sent TES XXXXX the retention letters for Mr. XXXXX and Mr. XXXXX on 7/22/2022 and requested a signed authorization from Mr. XXXXX on 7/21/2022. On 7/26/2022, Operations Manager XXXXX provided the FDIC with a signed retention letter from Mr. XXXXX, although it was dated 7/27/2022. Additional email correspondence with Ms. XXXXX confirmed that the client utilized an incorrect signature date. Supporting email communication between the bank and the client evidence a receipt date of 7/26/2022. Attached
to this memo is documentation supporting the retention authorization for each of the XXXXX clients, and the email chain confirming the request and receipt of information from Mr. XXXXX
The table below summarizes what crypto-related assets the trust department holds upon client direction in client accounts. As of 6/27/2022, all of the accounts have been negatively impacted by the recent market environment.
| Crypto-Related Asset | Account Name | Number of Shares | Cost As of 4/15/2022 | Market Value As of 7/21/2022 |
|---|---|---|---|---|
| XXXXX | XXXXX | XXXXX | XXXXX | XXXXX |