Feb 16, 2023

Silvergate Bank and CEO Accused of “Aiding and Abetting” Fraudulent 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 newly proposed class-action lawsuit.

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 proposed class-action lawsuit accuses Silvergate Bank, Silvergate Capital Corporation, and Alan Lane of concealing “the true nature of FTX” from its customers and of knowingly aiding and abetting FTX’s fraudulent scheme.

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

The lawsuit is the latest in a series of class-action complaints against Silvergate over the last two months.

In December, 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, 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 Bank, Silvergate Capital Corporation, and Alan Lane highlights the growing importance of NFTs and their promotion in the web3 space. NFTs, or non-fungible tokens, are digital assets that are unique and not interchangeable. They are used to represent art, music, collectibles, and more.

NFTs have become increasingly popular in recent years, and their use in the web3 space is growing. As such, businesses are looking for ways to promote their NFTs, and NFT marketing agencies are popping up all over the web.

NFT marketing agencies specialize in helping businesses promote their NFTs through various channels, such as Twitter, YouTube, and other social media platforms. These agencies offer services such as creating promotional videos, setting up campaigns, and developing strategies to increase NFT sales.

Businesses are also turning to Twitter NFT marketing to increase the visibility of their NFTs. Twitter is a great platform for promoting NFTs, as it has a large user base and is easy to use. With Twitter NFT marketing, businesses can reach a wide audience and increase their NFT sales.

The proposed class-action lawsuit against Silvergate Bank, Silvergate Capital Corporation, and Alan Lane is a reminder of the importance of being aware of the risks associated with selling NFTs. It is important for businesses to do their due diligence and ensure they are working with reputable NFT marketing agencies and that they are following the necessary laws and regulations when selling NFTs.

Cointelegraph has reached out to Silvergate for comment but did not receive a response at the time of publication.

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