Silvergate To Face Lawsuit Over Alleged FTX Exchange Fraud
Silvergate Bank is set to face a class-action lawsuit after users accused the bank of facilitating fraud at the FTX exchange and its affiliate, Alameda Research.
A federal court in San Diego dismissed Silvergate’s motion for dismissal, stating that the plaintiffs had sufficiently alleged Silvergate’s awareness of fraudulent activities and argued the bank unjustly enriched itself at the expense of FTX users.
The court highlighted Silvergate’s Exchange Network’s pivotal role in FTX operations, finding that it processed financial transactions and accepted deposits that facilitated the alleged fraud.
(With inputs from Shikha Singh)
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