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A lawsuit was filed against Silvergate Capital Corporation, Silvergate Bank, and Silvergate's CEO in the U.S. District Court for the Southern District of California.
The lawsuit states that the companies and Alan Lane personally directly facilitated the fraudulent activities of the FTX cryptocurrency exchange.
Plaintiff Joewy Gonzalez stated that he and other investors entrusted their funds to the FTX crypto exchange, which promised that depositors would be able toSecurely store assets as they increase in value, as well as cash out or exchange them for other assets or financial products.However, after the collapse of FTX, investors were unable to recover their funds and faced, as the lawsuit says, years of uncertainty and catastrophic losses.
Gonzalez alleges that publicly traded and federally regulated crypto bank Silvergate maintained the accounts of FTX and its subsidiary Alameda Research, and most importantly , was directly involved in all of FTX's activities, such as mixing funds and lending abusive transfers.
"Crypto exchange FTX and Alameda Research have been among Silvergate's top customers.All of their operations were closely intertwined, so Silvergate profited fromcustomer crypto asset deposits that have grown exponentially as FTX's business has expanded," the lawsuit reads.
Earlier, a group of US senators sent a request to Silvergate Bank
to provide information regarding joint operations with FTX and relations with the former CEO of the crypto exchange, Sam Bankman-Fried.
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