Statistica Capital, an investment firm based in New York City, has filed a lawsuit against Signature Bank for alleged involvement in the collapse of FTX.
Signature Bank has been accused of allowing the fraudulent FTX crypto-currency to be linked to customer accounts, even after it was discovered last year.
Statistica Capital Ltd., a British-based investment firm, claims in an 87-page document filed in the Manhattan federal court on Monday that it can represent a class of injured investors.
Bloomberg reporters confirmed that Signature knew about FTX’s “extravaganzas” since June of 2020 and could have substantially facilitated the fraud. The financial institution publicly promoted FTX, which is now defunct.
The company failed to suspend or halt any of the FTX transactions that violated its terms of service.
Statistica Capital, a plaintiff in the proposed class action case against FTX and Signature Bank, filed suit to recover damages for itself and other entities alleged to have suffered losses due to malfeasance by Signature. Despite its fraud scandal, the bank has continued to make transactions.
Strong ties to defunct exchange FTX
Just last year, Signature Bank executive Eric Howell revealed plans for the organization to decrease its cryptocurrency deposits by $10 billion. The report indicated that the bank would reallocate funds based on recent market trends and a collapse in cryptocurrency exchange rates caused by “the bear.”
Exchange FTX was a client of Signature Bank, and in fact, the bank confirmed last November 14th that at least 0.1% of its overall deposits came from FTX.
Other startups like BlockFi are also picking up the scraps after filing for bankruptcy. The company recently got a court green light to sell its bitcoin mining assets in order to work around its standing debts
