The Federal Deposit Insurance Corporation issued a consent order to crypto-friendly Cross River Bank regarding “unsafe or unsound banking practices.”

Cross River Bank is a venture-backed New Jersey regional bank that does business with major crypto firms like Coinbase and Circle.

“The FDIC considered the matter and determined, and the bank neither admits or denies, that it engaged in the unsafe or unsound banking practices related to its compliance with applicable fair lending laws and regulations by failing to establish and maintain internal controls, information systems, and prudent credit underwriting practices,” the 34-page consent order said.

The FDIC supplies insurance for depositors in American commercial banks and savings banks. A spokesperson did not comment but directed The Block to the consent order which was issued on March 8 and made public Friday. 

(by Stephanie Murray)