Banking
Mar. 27, 2024
Silvergate Bank and CEO to face claims of aiding FTX fraud
A judge denied the bank’s motion to dismiss the plaintiffs claim that Silvergate accepted customer deposits into non-FTX accounts controlled by FTX’s founder, Sam Bankman-Fried, who was found to have misappropriated the funds.
Silvergate Bank and its CEO must face aiding and abetting claims that were brought by a putative class of former customers of the bankrupt cryptocurrency exchange FTX.
In bringing the lawsuit against the now-defunct Silvergate Bank last year, the plaintiffs claimed their money was lost because Silvergate, FTX’s bank, accepted customer deposits into non-FTX accounts that were controlled by its founder and convicted felon who was found to ha...