SBF and FTX fraud ‘aided and abetted’ by Silvergate Bank, alleges lawsuit

Silvergate Bank and its CEO Alan Lane have been accused of “aiding and abetting” a “multibillion-dollar fraudulent scheme orchestrated by Sam Bankman-Fried (SBF)” and two of his entities, FTX and Alameda Research, in a newly proposed class action lawsuit.

The proposed class-action lawsuit was filed in the United States District Court of the Northern District of California on Feb. 14 by lawyers representing a San Francisco-based FTX user who – just like all other FTX customers – was frozen out of around $20,000 in crypto when the exchange collapsed last year.

Plaintiff Soham Bhatia alleges that Silvergate Bank, its parent company Silvergate Capital Corporation and CEO Alan Lane were aware of the use of FTX customer funds by Alameda Research and has accused them of concealing “the true nature of FTX” from its customers.

“At all relevant times, Silvergate, Bankman-Fried and Lane were each co-conspirators of the other,” according to the lawsuit, adding:

Silvergate and Lane aided and abetted, encouraged and substantially assisted Bankman-Fried in jointly perpetrating a fraudulent scheme upon Plaintiff and the class.

“By aiding, abetting, encouraging and substantially assisting the wrongful acts, omissions and other misconduct alleged above, Defendants acted with an awareness of their wrongdoing and realized that their conduct would substantially aid the accomplishment of their illegal design.”

The suit seeks a combination of damages, restitution and disgorgement of profits with the amount to be determined in trial.

However, the lawsuit is yet to be certified by the district court, which is a necessary step before it can proceed as a class action.

Related: Crypto bank Silvergate ranks as the second- most-shorted stock on Wall Street

The latest proposed lawsuit is just another class-action complaint filed against Silvergate over the last two months.

On Dec. 14, plaintiff Joewy Gonzalez filed a similar class-action suit in the California Southern District Court – accusing Silvergate of its alleged role in “furthering FTX’s investment fraud” by aiding and abetting the crypto exchange when it placed FTX user deposits into the bank accounts of Alameda.

On Jan. 10, a class-action suit was filed against Silvergate Capital Corporation in the United States District Court of Southern California alleging that Silvergate’s platform failed to detect occurrences of money laundering “in amounts exceeding $425 million” involving South American money launderers.

On Feb. 6, algorithmic trading firm Statistica Capital filed a putative class-action lawsuit against Signature Bank alleging it had “actual knowledge of and substantially facilitated the now-infamous FTX fraud.”

“In particular, Signature knew of and permitted the commingling of FTX customer funds within its proprietary, blockchain-based payments network, Signet,” it wrote.

Cointelegraph has reached out to Silvergate for comment but did not receive a response at the time of publication.

All Dutch and English crypto news!

Cathie Wood explains why she’s been loading up on this crypto stock

Cathie Wood explains why she's been buying Block shares. Barclays sees upside in the crypto stock to $103 a share. Block stock is currently down 70% versus...

Bitcoin holds $28K due to spot buying, but institutional investors are still selling

Bitcoin's (BTC) price broke above the February 2023 highs of $25,200 after U.S. inflation data was in consensus with the market expectation. The potential fallout...

12 of the Best Best Cheap Cryptos to Buy Now – Low Price, High Potential

Every investor knows that finding the lowest-price crypto coins from a value perspective is key to delivering massive returns on investment. Finding promising projects can...

Bitcoin hits new 9-month highs above $28K as markets flipflop over FOMC

Bitcoin (BTC) headed to new nine-month highs after the March 21 Wall Street open as a crucial Federal Reserve interest rate decision loomed. BTC/USD 1-hour candle...

Beste exchanges

Koop je crypto bij Bitvavo