Signature Bank Accused of Aiding FTX Group Fraud
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One of the largest US cryptocurrency banks, Signature Bank, was accused of helping the FTX Group cryptocurrency exchange, which collapsed last November, commit fraudulent activities with clients’ assets. The corresponding lawsuit against the bank was filed in the federal court of New York by the investment company Statistica Capital, reports Bloomberg.
As noted in the lawsuit, Signature has been aware of FTX’s fraudulent activities since at least June 2020 and “materially facilitated” the fraud by publicly advertising the exchange and not “closing, suspending or otherwise restricting” Alameda and FTX accounts that violated the terms of service.
Statistica Capital is asking the court to recognize its claim as a class action and intends to seek compensation from Signature both in favor of the investment company and other persons affected by the collapse of FTX.
Previously became knownthat Signature was forced to borrow about $10 billion in the fourth quarter of 2022 from the Federal Home Loan Banks (FHLB). This is one of the largest FHLB loans in the past two years. The bank was forced to borrow such a substantial amount, as at the end of the year the volume of its deposits fell from $103 billion to $89 billion. This was the first time in the history of the company when the volume of deposits of its clients decreased at the end of the year. The main reason for this fall became bankruptcy FTX Group in November last year. As a result, the share of the bank’s cryptocurrency clients in the total volume of deposits decreased in the fourth quarter from 25% to 15%. Later, the bank announced that it intends to leave the cryptocurrency market and focus on its core business – mortgage lending.
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