BlocksInform
British Virgin Islands-based investment management and cryptocurrency trading firm Statistica Capital sued Signature Bank of New York, Alleging that the FI facilitated the fraudulent activities of the FTX Crypto Exchange prior to its collapse.
According to a Bloomberg report, the class suit was filed at the US District Court for the Southern District of New York in Manhattan on Monday. The complaint alleged the signature was facilitating and playing an important role in the FTX fraud.
Signature’s Alleged Role in FTX Fraud
Recall that FTX went bankrupt in November 2022 after suffering a severe liquidity crunch. Whereas the exchange is still before the courts trying to figure out how founder and former managing director sam bankman-fried (sbf) badly managed user funds, The signature bank has announced a move away from crypto space.
In December, the bank revealed it was cutting its cryptography-related deposits from $8 billion to $10 billion, citing the down-market of 2022 and the disappearance of ftx.
Last month, CryptoPotato reported when crypto exchange BINANCE warned its users that Signature had set its SWIFT transfer limit to $100,000, further limiting its exposure to the digital asset space.
As the signature keeps moving away from the industry, its role in the ftx meltdown has not gone unnoticed. Statistia accused the bank of making it possible for the struggling exchange to combine user accounts with its blockchain network.
Signature has not reported to the appropriate authorities, although it has noticed suspicious FTX transactions across its blockchain bookmark payment network.
The complaint alleged that the bank in New York was aware of the fraudulent activities of ftx since June 2020. However, signing would have facilitated fraud by encouraging public exchange and not suspending alameda or ftx accounts.
Statistica filed the proposed class action to allow it, as well as other affected entities, to recover damages as a result of the ftx collapse due to the mischief of the signature.
FTX travels to collect political donations.
In the meantime, the new FTX directors are trying to recover the money given to politicians while the SBF was CEO. Reports indicate that the founder of the scholarship and its cohorts donated approximately $93 million to these parties.
The crypto company has sent confidential messages to the beneficiaries, seeking the return of the donations by February 28.
