Two potentially deep pockets of recovery for former customers of the collapsed cryptocurrency exchange FTX just got a lot shallower.
After FTX fell apart, its customers filed at least four class actions accusing either Silvergate Bank or Signature Bank of helping FTX insiders plunder customer funds….
It’s easy to see why plaintiffs’ lawyers for FTX customers targeted the banks. The exchange itself is in Chapter 11 bankruptcy, and FTX insiders are facing restitution claims in litigation brought by the U.S. government. And banks, as the saying goes, are where the money is…
That’s almost certainly not going to happen in the FTX case, thanks to the failures of both Silvergate and Signature.
‘Enforcement 40’ for 2020
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