A report by Inner City Press reveals that there is a lawsuit against Silvergate in the California Federal Court
The suit asserts the following about Silvergate, a publicly traded and regulated bank that maintained the accounts of both Alameda and FTX:
1: That Alameda and FTX maintained accounts with Stargate
2: It directly aided and abetted FTX’s fraud and breach of fiduciary duty via first-hand participation in the commingling of funds, improper transfers, and lending out of customer money
3: Silvergate processed billions in transfers from FTX’s client accounts at Silvergate to Alameda accounts
4: Silvergate accepted deposits from FTX investors—intended to be stored, traded, or cashed out—that at Bankman-Fried’s direction were wired straight to Alameda bank accounts and misused.
It is worth mentioning that aside Silvergate, FTX and Alameda used Moonstone Bank which was formerly Farmington State Bank.
The bank was renamed to Moonstone Bank after receiving investment from Alameda
Source: Inner City Press
