A California judge has ordered the consolidation of three investor lawsuits against the now-defunct crypto bank, Silvergate Bank.
The lawsuits involve the bankrupt crypto exchange FTX, which is accused of facilitating investor fraud with the help of Silvergate.
The three cases, brought by four former investors, will remain separate from other federal cases against FTX and its founder, Sam Bankman-Fried, but will be combined by mutual agreement of the litigants.
Silvergate is accused of aiding and abetting FTX’s alleged misconduct, including processing illegitimate transfers of FTX customer funds to its sister trading firm, Alameda Research.
The consolidation was ordered due to the common questions of law and facts involved in the cases. Silvergate disclosed its plans to shut down operations in March following a bank run and was hit with a class-action suit in January for securities law violations.
In a related development, New York state’s financial regulator has said that the collapse of Signature Bank was caused by a run from a broad base of depositors across business sectors, not crypto.
