Leading crypto bank Silvergate was slammed by a class-action lawsuit from investors who invested in the collapsed FTX.
Joewy Gonzalez filed the Dec. 14 lawsuit for himself and others affected by the FTX’s failure. Gonzalez accused Silvergate of “aiding and abetting” the FTX fraud.
The plaintiff claimed that he invested his funds in FTX because the exchange promised to store their digital assets securely. He added that FTX promised to allow investors “cash (their funds) out, or trade them for other assets or financial products.”
Silvergate’s Role at FTX
According to the lawsuit, the crypto bank had a “plain sight” of the fraud at FTX but failed in its “duty of due diligence.” It continued that the ‘defendants breached their know-your-customer and anti-money laundering duties with respect to FTX/Alameda.”
Also, the plaintiff alleged that Silvergate participated in commingling funds, improper transfer, and…
