Vast Bank’s chairman reveals cryptocurrency struggles, vows to ‘come out swinging’

“I was knocked down, embarrassed and hurt in the fifth round, and I look at life as different (boxing) rounds. But I can tell you that I will emerge triumphant in the sixth round,” said Vast Bank President Tom Biolchini.

Biolchini made these statements on Wednesday at the Friends of Finance at the University of Tulsa Speaker series. More than 300 people attended.

The bank's decision to shut down cryptocurrencies came on the heels of a cease and desist order initiated against you by the U.S. Office of the Comptroller of the Currency in October.

Biolchini described in general terms how that office initially gave the green light to banks to offer cryptocurrencies, only to change the parameters after the last presidential election.

"The real version of the story I can't really tell," he said. “It's called confidential supervisory information, and it's certain communications with me and the (banking) regulators that I just can't talk about.

"If you heard the real story, you would literally fall off your chair, and I'm not kidding."

Vast Bank disabled and removed its crypto mobile banking app effective Jan. 31 after becoming the first US bank to offer crypto services in 2021, it said.

The consent order says the lender engaged in unsafe and unsound practices related to strategic and capital planning, project management, books and records, escrow account controls and risk management for new products.

"The consent order is 30 pages long and does not mention cryptocurrencies," he said. "It just said we were a horrible bank."

“There is a reason: they gave us the legal right to make (cryptocurrencies) two years earlier, under a different administration. They can't say it's crypto or they'll prepare for a lawsuit. Then they have to say: 'It's because you're a bad bank.'”

"I can't tell you everything they did," he said. “But I will tell you, they used every tool they had, and over a period of… days, everything is fine, and now it's not.

“I tried to negotiate... years of always doing the right thing, of solving every problem. I understand if you don't like cryptocurrencies. I understand and we will withdraw.”

"Why did this happen? That's the question. I don't know."

The Tulsa-based lender notified its customers that their digital assets would be liquidated and accounts would be closed.

The good news, Biolchini said, “is that our bank is in very good condition,” adding that Vast has more liquidity than most banks in the state.

The federal government, he said, "can make things happen that don't become part of the mainstream."

Biolchini served as president of the Tulsa Regional Chamber of Commerce in 2023 and was an attorney before joining Vast in 2008.

He earned his bachelor's degree, master's degree in business administration and law from the University of Notre Dame, where he also boxed.

“Don't be the person who looks at the person who is fighting, criticizing them and making fun of them or whatever. Get in the ring and fight... in whatever aspect of life you're working on,” she said.

"The federal government might try to crush the Tulsa bench, but it can't crush the Tulsa spirit," he said.

“I was impressed by the support Vast Bank received during this difficult time. I'm talking about competing bankers: 'What can we do? How can we help?'"

“You wonder why I love Tulsa, Oklahoma. "It's my family and it always will be, and I will give back to the people of Tulsa for the rest of my life because I am so impressed with the generosity and support I received from the Tulsa community."