3 Silvergate Investor Lawsuits Combined Regarding FTX In California

3 Silvergate Investor Lawsuits Combined Regarding FTX In California

Jacqueline Scott, a judge from the Northern District of California, disallowed the consolidation of three lawsuits brought against the now-defunct cryptocurrency bank Silvergate Bank that were connected to the failed cryptocurrency exchange FTX.

Four investors have accused Silvergate of aiding the now-defunct cryptocurrency exchange FTX in defrauding investors.

In a ruling, the court stated that “The Silvergate cases involve common questions of law and fact, as they name common defendants, arise from the same alleged course of conduct, and assert overlapping causes of action, such that the Silvergate cases are appropriate for consolidation.”

However, the court will treat these cases differently from other federal cases involving FTX and its founder Sam Bankman-Fried.

Four plaintiffs filed a complaint in which they claimed Silvergate had helped FTX defraud investors. This includes unauthorized transfers of funds from FTX customers to its sister trading company Alameda Research.

Compiled by Coinbold