- A lawsuit exposes Deltec Bank’s alleged provision of ‘secret’ credit to SBF for Tether purchases.
- Deltec allegedly knew about suspicious transfers between FTX and Alameda but facilitated them anyway.
- Deltec stands accused of aiding SBF in misappropriating customer funds.
Recent developments following Sam Bankman-Fried’s (SBF) conviction on fraud charges suggest a tighter web of connections than previously known. Specifically, a lawsuit filed against alleged enablers of his scheme has shed light on the intricate relationship between SBF, Bahamas-based Deltec Bank, and the USDT stablecoin issuer Tether.
Bloomberg captured details of the lawsuit in a recent report. It disclosed that the lawsuit alleged that SBF’s hedge fund, Alameda Research, received a secret short-term line of credit worth billions of dollars from Deltec Bank to fuel the growth of Tether.
In particular, the lawsuit alleged that Deltec granted Alameda a three-day grace period to pay for purchased USDT tokens. This alleged “secret line of credit” enabled profitable trades for Alameda, allowing it to sell USDT into the market before funding the purchase.
As a result, Deltec stands accused of aiding Bankman-Fried in misappropriating customer funds by facilitating transfers between FTX and Alameda.
According to the lawsuit, Deltec had ample reason to be suspicious of the transfers but failed to take appropriate action. However, Desiree Moore, a lawyer for Deltec, asserted that the bank was unaware of FTX’s misconduct until it was made public.
Notably, the documents were submitted on Friday in a Florida federal court as a component of a case initiated by attorneys representing victims of Bankman-Fried’s fraud. They are pursuing compensation from alleged accomplices, including Deltec.
FTX, once valued at billions, collapsed in November 2022, leading to Bankman-Fried’s conviction on multiple counts of fraud and conspiracy. As his sentencing looms, the lawsuit introduces another layer to the intricate web of allegations encircling his enterprises.
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