Bahamian Bank Under Scrutiny for Giving “Secret” Credit to SBF to Buy USDT
In the ongoing saga of FTX's financial woes, fresh legal entanglements have surfaced for the former CEO of the troubled cryptocurrency exchange.
The latest turn in the FTX bankruptcy drama reveals a connection between Sam Bankman-Fried and Deltec, a financial institution headquartered in the Bahamas. Recent court filings in Florida allege that FTX’s sister trading firm, Alameda Research, played a role in clandestine efforts to boost the growth of Tether, the issuer of the USDT stablecoin.
According to the allegations, Alameda Research is accused of leveraging significant undisclosed short-term credit lines from Deltec Bank & Trust Ltd to manipulate Tether’s expansion.
Additionally, Deltec finds itself implicated in a purported fraudulent scheme involving the misappropriation of customers’ deposits, allegedly facilitated by Bankman-Fried. It is claimed that Deltec aided FTX and Alameda Research by facilitating fund transfers between accounts, despite potential signs of irregularities.
In an attempt to distance itself from the accusations, Deltec asserts ignorance of the alleged scheme. Statements from Desiree Moore, an attorney representing Deltec at Venable LLP in Chicago, suggest that the bank and its executives were unaware of the situation until it became public knowledge. Moore suggests that the recent allegations may be coming from individuals involved in ongoing legal disputes, potentially seeking leniency in exchange for providing information.
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Meanwhile, Tether, the stablecoin issuer, has yet to issue an official response to the allegations. The claims have emerged as victims of the alleged fraud attempt to recover assets from Deltec and other entities suspected of facilitating the scheme. The revelation adds another layer of complexity to the FTX bankruptcy proceedings.
Despite previous suspicions surrounding Tether’s rapid ascent, the stablecoin issuer has consistently denied any wrongdoing. FTX remains committed to its promise to refund creditors amid the bankruptcy proceedings, though the latest developments may necessitate a reevaluation of the timeline. The restructuring efforts could face delays as additional information comes to light.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
