Silvergate Sued Over FTX & Alameda

Silvergate Sued Over FTX & Alameda

Altcoin news, News

Regarding its dealings with the defunct FTX and Alameda Research, a class-action lawsuit was submitted to the California Southern District Court against Silvergate Bank, Silvergate Capital Corporation, and Silvergate CEO Alan Lane. The lawsuit is related to the relationship between the three entities.

Joewy Gonzalez, a resident of Massachusetts, is the one who has initiated the class-action legal proceeding on behalf of himself and everyone else in a comparable position.

The plaintiff is represented by Girard Sharp and Hartley LLP, their legal counsel. There has been no action taken by the defense counsel for the Silvergate company as of yet.

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The complaint claims that the plaintiff put his life savings into cryptocurrencies by trusting FTX. As a consequence of the current crisis at FTX, the plaintiff and other FTX investors are unable to get their money back and “face years of uncertainty and catastrophic losses,” according to the lawsuit.

The complaint claims that Silvergate intentionally helped and promoted FTX’s fraudulent behavior and violations of fiduciary responsibility by actively taking part in the commingling of funds, inappropriate transfers, and lending out of client money. These actions are described as “commingling of funds.”

“Silvergate is liable for its role in furthering FTX’s investment fraud and breaches of fiduciary duty and is obligated under common law to make Plaintiff and the other investors whole,” the plaintiff notes. 

Following the failure of FTX, the CEO of Silvergate, Alan Lane, released an open letter to shareholders in an effort to reassure them about how the company handled the matter. Reportedly, throughout the onboarding process as well as via continual monitoring, Silvergate carried out a substantial amount of due diligence on FTX and the organizations with which it is linked, including Alameda Research.


Senators Elizabeth Warren, John Kennedy, and Roger Marshall wrote a letter to Silvergate on December 6 demanding information about the company’s role in the FTX collapse and requesting information from Lane regarding the relationship between the company and FTX. The letter also requested information from Lane regarding the relationship between Silvergate and FTX. The deadline for Silvergate to provide a response to the MPs is December 19.

Compiled by Coinbold