Bahamian Bank Accused of Providing Secret Credit to FTX Fraudster for Tether Purchase
A new lawsuit filed against Deltec, a Bahamian bank, alleges that it provided a secret line of credit to Sam Bankman-Fried, the fraudster behind FTX. This credit allegedly allowed him to buy Tether, according to a Bloomberg report. The lawsuit, filed in Florida federal court, claims that Bankman-Fried’s hedge fund, Alameda Research, used this line of credit worth billions of dollars from Deltec to fuel the growth of Tether. The investigation has been aided by Caroline Ellison, the former CEO of Alameda Research and Bankman-Fried’s ex-girlfriend, who provided 7,000 pages of Telegram chats.
Communications Reveal FTXβs Ties to Tether in New Lawsuit
The lawsuit against Deltec alleges that Bankman-Fried’s hedge fund, Alameda Research, used a secret line of credit from the bank to buy Tether.
Caroline Ellison, the ex-girlfriend of Bankman-Fried and former CEO of Alameda Research, has cooperated with the investigation and provided 7,000 pages of Telegram chats.
Documents shared by reporter Zeke Faux on X reveal communications between key players at FTX and Alameda Research.
Deltec Chairman Denies Knowledge of FTXβs Misconduct
Deltec’s lawyer claims that the bank’s chairman had no knowledge of FTX’s crypto-related crimes until they were made public.
The allegations in the lawsuit are based on statements from individuals who are settling their lawsuits with plaintiffs in exchange for providing information.
SBFβs Never-Ending Legal Saga Continues This Week
Sam Bankman-Fried, the founder of FTX, was convicted of fraud in November 2023.
Bankman-Fried’s sentencing is scheduled for March 28, 2024, and he is currently being held at Metropolitan Detention Center in Brooklyn.
Representatives from Deltec and Tether have not responded to requests for comment.
Hot Take: Lawsuit Alleges Secret Credit Provided to FTX Fraudster for Tether Purchase
A new lawsuit claims that Deltec, a Bahamian bank, provided a secret line of credit to Sam Bankman-Fried, the fraudster behind FTX. This credit allegedly allowed him to buy Tether. The lawsuit alleges that Bankman-Fried’s hedge fund used this credit from Deltec to fuel the growth of Tether. The investigation has been aided by Caroline Ellison, Bankman-Fried’s ex-girlfriend and former CEO of Alameda Research. While Deltec denies knowledge of FTX’s misconduct, Bankman-Fried’s legal saga continues with his upcoming sentencing. Representatives from Deltec and Tether have not commented on the allegations.
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