Silvergate Bank is facing a class-action lawsuit over its dealings with two crypto exchanges, FTX and Alameda Research. The lawsuit claims that Silvergate enabled the exchanges to engage in market manipulation and other illegal activities, including wash trading and spoofing, resulting in financial losses for traders. The lawsuit also alleges that Silvergate failed to monitor and report suspicious activity to the federal government, in violation of the Bank Secrecy Act. The case is currently pending in the U.S. District Court for the Southern District of California. If the plaintiffs are successful, Silvergate could be liable for millions of dollars in damages.
Source: Cointelegraph