Feb 16, 2023

Silvergate Bank Accused of “Aiding and Abetting” Multibillion-Dollar Fraud Scheme

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

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

The lawsuit 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 accuses them of concealing “the true nature of FTX” from its customers.

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

The proposed lawsuit is the latest in a string of class-action complaints 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, and on Jan. 10, a class-action suit was filed against Silvergate Capital Corporation in the United States District Court of Southern California.

The lawsuit against Silvergate is part of a larger trend of companies being accused of wrongdoing in the web3 space. Last week, 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 proposed class-action lawsuit against Silvergate highlights the importance of understanding the risks associated with investing in crypto, and the need for investors to be aware of the potential for fraud. As the crypto space continues to grow, it is essential that investors do their due diligence and be aware of the potential for fraud.

The crypto space is also seeing an increase in NFTs and NFT marketing, with companies turning to Twitter NFT marketing to promote their projects. A number of web3 agencies are now offering NFT marketing services, helping projects to reach a wider audience and increase their visibility.

As the crypto space continues to evolve, it is important that companies in the space take steps to ensure that they are operating in a compliant manner and that they are not facilitating any fraudulent activity. Silvergate Bank and its CEO Alan Lane have been accused of failing to do so, and the proposed class-action lawsuit is a reminder of the importance of compliance.

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.