Feb 16, 2023

Silvergate Bank Accused of Aiding, Abetting “Multibillion-Dollar Fraudulent Scheme”

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

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

The 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.

The lawsuit further claims that Silvergate and Lane “acted with an awareness of their wrongdoing and realized that their conduct would substantially aid the accomplishment of their illegal design.” As a result, the suit seeks a combination of damages, restitution and disgorgement of profits with the amount to be determined in trial.

The proposed class-action lawsuit is just one of several that have been filed against Silvergate over the last two months. On Dec. 14, plaintiff Joewy Gonzalez filed a similar class-action suit in the U.S. District Court for the Southern District of California — 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.

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

The influx of lawsuits against Silvergate and other companies in the web3 space has highlighted the need for better promotion of NFTs and other crypto assets. The NFT market has seen a surge in popularity in recent months, with many investors looking to capitalize on the growing demand for digital assets.

However, with this growth has come an increased risk of fraud and scams, making it more important than ever for investors to be aware of the potential risks and to do their due diligence before investing.

Fortunately, there are a number of NFT marketing agencies and web3 agencies that specialize in helping companies promote their NFTs and other crypto assets in a safe and secure way. These companies can help companies create effective Twitter NFT marketing campaigns, as well as provide advice on how to best sell NFTs and other digital assets.

By utilizing the services of a reputable NFT marketing agency, companies can ensure that their digital assets are being promoted in a safe and responsible manner, while also helping to protect investors from potential scams and fraudulent activities.

Disclaimer: All investment or financial opinions expressed by MoonLanding Media are not recommendations and are intended for entertainment purposes only. Do your own research prior to making any kind of investment. This article has been generated based on trending topics, has not been fact checked and may contain incorrect information. Please verify all information before relying on it.