Silvergate Shares Are Down 9% Following The News Of The Lawsuit
Following the news of a lawsuit against the bank for its claimed “integral” participation in Sam Bankman-Fried’s exchange, Silvergate shares have seen a significant fall of 9%.
Due to the effects of negative news about the complicated relationship with FTX, the stock of Silvergate is trading around an all-time low. Peer crypto stocks were also down, with Robinhood down 5.9% and Coinbase down 3.7%.
The cryptocurrency bank is held accountable for the alleged fraud at the defunct FTX exchange, according to the lawsuit, which is asking for class action status. This is because the crypto bank maintained accounts for both the defunct exchange and its sister trading company Alameda Research, aiding and abetting the breach of fiduciary duty.
In particular, Coincu previously reported that Silvergate Bank has been accused of playing an integral role in the FTX scam by maintaining accounts, while supporting and abetting the collapse of FTX and Alameda Research’s breach of fiduciary duty.
The case, which was filed in the U.S. District Court for the Southern District of California, asserts that due to the various accounts it handled for FTX Ltd., FTX US, and Alameda, Silvergate had “plain sight” of crimes being committed.
Sam Bankman-Fried, the founder and former CEO of FTX, was arrested on December 12 in the Bahamas on suspicion of money laundering, wire fraud, securities fraud, and conspiracy to commit wire fraud.
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