Deltec Bank & Trust, a leading financial institution in the Bahamas, is facing legal action accused of enabling FTX and its affiliates to benefit from Tether (USDT). Allegedly, Sam Bankman-Fried’s Alameda Research supported Tether’s growth through a secret credit line from Deltec. Tether is the company behind the altcoin USDT.
How FTX profited from Tether behind altcoin USDT
A new lawsuit alleges that Sam Bankman-Fried opened accounts with Deltec in 2018 to facilitate access to Tether. During the crypto market rally between 2020 and 2021, the crypto company reportedly minted billions of USDT. Allegedly, Alameda Research received these stablecoin tokens before paying them. He also took advantage of arbitrage opportunities for profit. Former CEO of Alameda Research, Caroline Ellison, also made the statement. “Alameda generates USDT on credit through the unofficial Deltec Credit Line.” said.
He also said that “Tether sells this USDT for a profit before having to fund the purchase by depositing dollars into Tether’s Deltec account.” The lawsuit also alleged that Deltec facilitated FTX’s broader misappropriation of funds. The bank allegedly took deposits from FTX customers and transferred them to Alameda, granted exemptions from certain regulations, and prioritized Alameda withdrawals during the crypto market downturn.
Statement from Deltec representatives
Deltec representatives also made a statement. He said neither the bank nor its chairman, Jean Chalopin, was aware of any wrongdoing. Tether is not a defendant in this case. The stablecoin issuer has consistently maintained that Alameda Research always paid for its USDT tokens in US dollars. Meanwhile, FTX creditors have filed legal action against Sullivan and Cromwell, LLP (S&C), alleging its complicity in events that led to the crypto exchange’s failure.
The law firm is currently overseeing FTX’s bankruptcy proceedings. S&C is accused of participating in FTX Group’s multibillion-dollar schemes. He is accused of actively participating in fraudulent activities that allegedly resulted in significant fees of $8.5 million. Creditors alleged that S&C was aware of and supported the crypto exchange in its deceptive practices. The following explanations are made:
S&C’s representation of FTX was wide-ranging and included regulatory matters, mergers and acquisitions, bankruptcy proceedings, personal representation of FTX Inside Defendants, representation on both sides of various agreements with other entities, and most recently, management of FTX bankruptcy proceedings.
History of Q&A relationship with FTX
The relationship between FTX and S&C was facilitated by Ryne Miller, who was previously a partner at S&C and assumed the role of general counsel at FTX Group in August 2021. Miller allegedly referred numerous cases at FTX to his former employer. Because, at least 20 examples are mentioned in the case. FTX creditors now face civil conspiracy, fraud. He also seeks damages for assisting in fiduciary breaches.
To be informed about the latest developments, follow us Twitter’in, Facebookin and InstagramFollow on . Telegram And YouTube Join our channel.