Class Action Suit Advances Against Silvergate Bank Over FTX Fr | Crypto Retro

Class Action Suit Advances Against Silvergate Bank Over FTX Fraud Allegations

Silvergate's Alleged Role in FTX Fraud
FTX users are taking legal action against Silvergate, accusing the bank of aiding FTX and Alameda Research in a historic fraud.

Questionable Transfers and Money Laundering
The lawsuit claims that FTX knowingly moved customer funds to Alameda Research, while FTX itself faces trial for fraud and money laundering.

Judge Denies Dismissal, Citing Foreseeable Harm
Judge Montenegro's ruling on March 20 rejected Silvergate's attempt to dismiss the case, stating that the bank should have foreseen the potential for fraudulent activity.

Silvergate's Surge in Revenue Raises Eyebrows
The court order reveals a significant increase in Silvergate's income after partnering with FTX, from $7.6 million to a staggering $75.5 million, prompting further scrutiny.

Duty of Care and Withdrawal Freezes
Silvergate's argument that it bears no responsibility for FTX customers' withdrawal issues is dismissed as "highly speculative" by the judge.

Crypto Winter Fallout: 3AC's Denial
In the midst of the industry-wide downturn, Kyle Davies of Three Arrows Capital defends himself against criticism, claiming that company bankruptcies are commonplace.

Terra's Collapse and UST's Downfall
The unraveling of Terra and its stablecoin UST, tied to LUNA tokens held by 3AC, adds to the ripple effect impacting FTX during this challenging period.