Signature Bank Sued for "Significantly Contributing" to FTX's Mixing of Funds

Signature Bank Faces Legal Action for Role in FTX Fund Comingling.

Signature Bank is facing a class-action lawsuit for its role in the operations of cryptocurrency exchange FTX, which has since filed for bankruptcy.

The algorithmic trading firm, Statistica Capital, and Statistica Ltd., claim in a court filing that Signature Bank “had actual knowledge of and substantially facilitated the now-infamous FTX fraud.”

The claimants assert that the bank allowed FTX customer funds to be transferred to accounts controlled by Alameda Research, which is owned by FTX founder Sam Bankman-Fried.

FTX was considered one of Signature Bank’s clients, although its deposits with the bank accounted for less than 0.1% of the bank’s overall deposits.

It remains to be seen whether the bank’s relationship with the cryptocurrency industry will change after the FTX incident. Signature Bank did not immediately respond to a request for comment.

TagsCrypto FTX

Ujunwa Juliet Ihiasota

I am a dedicated crypto and blockchain content writer who is vision-oriented, diligent, smart, and self-motivated. I have over a decade of self-writing experience and five years of experience as a professional writer. I hope to inspire other women into this ever-evolving field.