Feb 16, 2023

Silvergate Bank Accused of Aiding $MultiBillion Fraud Scheme

Silvergate Bank, its parent company Silvergate Capital Corporation, 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 class-action lawsuit filed in the United States District Court for the Northern District of California on Feb. 14. The lawsuit was brought by 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, 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 lawsuit claims that Silvergate, Bankman-Fried, and Lane were each co-conspirators of the other and that they acted with an awareness of their wrongdoing.

The lawsuit seeks a combination of damages, restitution, and disgorgement of profits with the amount to be determined in trial. However, the lawsuit has yet to be certified by the district court, which is a necessary step before it can proceed as a class action.

The latest proposed class-action lawsuit is just one of several similar suits filed against Silvergate over the last two months. On Dec. 14, plaintiff Joewy Gonzalez filed a 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. 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.” Signature Bank is accused of knowing of and permitting the commingling of FTX customer funds within its proprietary, blockchain-based payments network, Signet.

The crypto and web3 space has been a hotbed of activity and innovation in recent years, with the rise of non-fungible tokens (NFTs) leading the charge. NFTs have been used for a wide variety of purposes, from art to digital collectibles, and their popularity has been growing exponentially. As a result, companies are increasingly turning to NFTs as a form of promotion and marketing.

This has spawned a new industry of NFT marketing agencies, which specialize in helping companies promote their NFTs on social media platforms like Twitter. Silvergate Bank and its CEO Alan Lane have been accused of aiding and abetting a fraudulent scheme involving NFTs and crypto, and this has led to a series of class-action lawsuits.

It is important for companies looking to promote their NFTs to be aware of the potential risks involved in using an NFT marketing agency. Companies should take the time to do their research and ensure that the agency they choose is reputable and has a good track record. Additionally, companies should be aware of the potential legal risks involved in using an NFT marketing agency, and ensure that they are compliant with all applicable laws and regulations.

Ultimately, NFTs are a powerful tool for promotion and marketing, and companies should take the necessary steps to ensure that they are using them in a safe and legal manner. Companies should also be aware of the potential legal risks associated with NFTs, and ensure that they are taking the necessary steps to protect themselves.

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.