New lawsuit claims SBF had access to secret credit from Bahamian bank Deltec to purchase Tether, reports Bloomberg.

Deltec faces new lawsuit alleging undisclosed credit line for FTX's Sam Bankman-Fried - What do court documents reveal?

Julia Smith

Last updated: February 19, 2024 17:32 EST | 2 min read

🔍 Communications Reveal FTX’s Ties to Tether in New Lawsuit

Bahamian bank Deltec is facing a new lawsuit claiming it provided a ‘secret’ line of credit to FTX fraudster Sam Bankman-Fried that allowed him to buy Tether, a February 17 Bloomberg report reveals.

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According to the documents filed with the Florida federal court and verified by Bloomberg, Bankman-Fried’s hedge fund Alameda Research fueled the growth of Tether using a secret short-term line of credit worth billions of dollars from Deltec.

In an interesting turn of events, the former CEO of Alameda Research and Bankman-Fried’s ex-girlfriend, Caroline Ellison, has cooperated with the investigation and has reportedly turned over 7,000 pages of Telegram chats.

📜 FTX and Alameda Research Chats Exposed

Reporter Zeke Faux, who initially published the story, shared several documents on Twitter detailing communications between key FTX and Alameda Research players. These messages shed light on the relationship between money, friendship, and conquering the world.

“Money for Sam has traditionally = money for Giancarlo (Devasini), so all around good,” former FTX CEO of Digital Markets, Ryan Salame, said in one of the messages included in the filings.

“We are a big family…we will conquer the world,” Giancarlo Devasini, Tether’s Chief Financial Officer, replied enthusiastically.

An unnamed messenger asked an Alameda trader about their role in this “madhouse”, to which the Alameda Trader replied, “Make money for Sam (Bankman-Fried) I guess”.

🛡️ Chairman Denies Knowledge of FTX’s Misconduct

Despite the litigation filed against the exchange, Deltec’s lawyer, Desiree Moore, stated that the bank’s chairman, Jean Chalopin, had no knowledge of FTX’s crypto-related crimes until they were publicly exposed.

Moore argues that the allegations heavily rely on unsubstantiated statements by individuals who are settling their lawsuits with plaintiffs in exchange for providing information.

💔 SBF’s Never-Ending Legal Saga

Sam Bankman-Fried, the disgraced “king of crypto”, was convicted on seven counts of fraud in November 2023 after a grueling month-long trial. Several FTX and Alameda Research employees, including FTX co-founder Gary Wang, FTX’s former Head of Engineering Nishad Singh, and Caroline Ellison, testified against him under a cooperation agreement with the U.S. government.

Bankman-Fried’s sentencing is scheduled for March 28, 2024, and he is currently being held at the Metropolitan Detention Center in Brooklyn. On Wednesday, February 21, he will appear in Manhattan federal court for a Curcio hearing regarding his new legal representation.

Representatives from Deltec and Tether have not responded to Blocking.net.com’s request for comment.

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Q&A

Q: What is the new lawsuit against Bahamian bank Deltec claiming? A: The lawsuit alleges that Deltec provided a secret line of credit to FTX fraudster Sam Bankman-Fried, allowing him to buy Tether.

Q: What evidence has Caroline Ellison provided in the investigation? A: Caroline Ellison, who is the ex-girlfriend of Sam Bankman-Fried and the former CEO of Alameda Research, has reportedly turned over 7,000 pages of Telegram chats as evidence.

Q: How are FTX and Alameda Research players communicating with each other? A: Communications between key FTX and Alameda Research players have been revealed through messages shared by reporter Zeke Faux on Twitter.

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🔮 Future Outlook and Investment Recommendations

The ongoing legal saga surrounding Sam Bankman-Fried and FTX raises questions about the credibility and stability of cryptocurrency exchanges. As investors, it is crucial to conduct thorough research and due diligence before engaging with any platform. Regulatory scrutiny and the involvement of law enforcement agencies should serve as a reminder to prioritize transparency and accountability in the crypto industry.

While these legal proceedings may temporarily impact the reputation and performance of FTX, it is important to remember that the blockchain and cryptocurrency space as a whole continues to grow and evolve. Opportunities for investment and innovation are still abundant. However, it is advisable to diversify portfolios and consider investing in established and reputable platforms that prioritize regulatory compliance and security.

🔗 Reference Links

1. Bloomberg – Bahamian bank Deltec sued over secret line of credit
2. Blocking.net – Sam Bankman-Fried unlikely to face a second trial
3. Google News – Stay updated with the latest news

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✍️ Written by Julia Smith

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