APP
Reported by Cointelegraph, Silvergate Bank and its CEO Alan Lane are facing another proposed class action lawsuit, which alleges that they "aided and abetted" a "multibillion-dollar fraudulent scheme" orchestrated by Sam Bankman-Fried (SBF), FTX, and Alameda Research.
The lawsuit was filed in the United States District Court of the Northern District of California on February 14, 2023, by lawyers representing a San Francisco-based FTX user who lost about $20,000 in crypto when the exchange collapsed last year.
The plaintiff, Soham Bhatia, alleges that Silvergate Bank, its parent company, and CEO were aware of the use of FTX customer funds by Alameda Research and concealed "the true nature of FTX" from its customers. The lawsuit further alleges that the defendants acted as "co-conspirators of the other" and "aided and abetted, encouraged and substantially assisted Bankman-Fried in jointly perpetrating a fraudulent scheme upon Plaintiff and the class."
The lawsuit seeks damages, restitution, and disgorgement of profits from the defendants. However, the district court has yet to certify the lawsuit before it can proceed as a class action.
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