Signature Bank is facing a lawsuit from Statistica Capital for being involved in the FTX crypto scandal that took place last year.
Signature Bank’s Ties to FTX
The New York-based bank is accused of disregarding the terms of service and facilitating FTX transactions despite the fraud charges. Statistica Capital, a British investment firm, filed a 87-page document in the Manhattan federal court, logging it as a proposed class action against Signature Bank.
The bank is accused of promoting the now-defunct cryptocurrency exchange and failing to halt transactions that violated their terms of service. The firm is seeking damages for the losses suffered in the FTX collapse on behalf of itself and other entities.
Signature Bank’s Ties to FTX Exchange
Signature Bank’s executive, Eric Howell, revealed plans to decrease crypto bank deposits by $10 billion last year. The bank confirmed that FTX was a client, and at least 0.1% of their overall deposits came from the defunct exchange. Signature Bank knew about FTX’s issues since June 2020, but did not suspend or halt FTX transactions, which facilitated the fraud.
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Conclusion
In conclusion, Signature Bank is facing a lawsuit from Statistica Capital for its involvement in the FTX fraud scandal. The bank is accused of promoting the now-defunct cryptocurrency exchange and failing to halt transactions that violated their terms of service. The proposed class-action lawsuit seeks to recover damages for the losses suffered in the FTX collapse on behalf of the plaintiffs and other entities.
Signature Bank’s ties to FTX are significant, as the bank confirmed that FTX was a client and at least 0.1% of their overall deposits came from the exchange. With these allegations, it remains to be seen how the case will unfold and what the outcome will be for Signature Bank.
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