Bank AI

<p>In a recent turn of events following the conviction of Sam Bankman-Fried (<a href="https://www.cryptopolitan.com/sbf-new-counsel-ahead-of-sentencing-hearing/" rel="noopener noreferrer nofollow">SBF</a>) on fraud charges, a lawsuit has been filed unveiling deeper connections between SBF, Deltec Bank, and the USDT stablecoin issuer Tether.&nbsp;</p>
<p>The lawsuit, brought forth against purported enablers of SBF’s scheme, sheds light on a complex relationship that facilitated the manipulation of Tether.</p>
<h2 class="wp-block-heading" id="deltec-bank-s-secret-line-of-credit-to-alameda-research">Deltec Bank’s secret line of credit to Alameda Research</h2>
<p>The lawsuit<a href="https://www.bloomberg.com/news/articles/2024-02-17/bahamas-bank-deltec-accused-of-giving-sbf-secret-credit-to-buy-tether" rel="noopener noreferrer nofollow" target="_blank"> alleges</a> that SBF’s hedge fund, Alameda Research, received a clandestine short-term line of credit worth billions of dollars from Deltec Bank, based in the Bahamas, to bolster the expansion of Tether.&nbsp;</p>
<p>Specifically, Deltec purportedly granted Alameda a three-day grace period to settle payments for USDT tokens, enabling profitable trades by allowing Alameda to sell USDT before funding the purchase.</p>
<h2 class="wp-block-heading" id="accusations-against-deltec-bank">Accusations against Deltec Bank</h2>
<p>Deltec Bank is accused of aiding Bankman-Fried in misappropriating customer funds by facilitating transfers between FTX and <a href="https://www.cryptopolitan.com/alerts-issued-amidst-ftx-transfers/" rel="noopener noreferrer nofollow">Alameda</a>. Despite purported suspicious transactions, Deltec allegedly failed to take appropriate action, according to the lawsuit.&nbsp;</p>
<p>However, Desiree Moore, legal counsel for Deltec, refuted these claims, asserting that the bank was unaware of FTX’s misconduct until it was disclosed publicly.</p>
<p>The lawsuit documents were submitted to a Florida federal court as part of a case initiated by attorneys representing victims of Bankman-Fried’s fraud. These victims seek compensation from alleged accomplices, including Deltec.&nbsp;</p>
<p>The revelation adds another layer to the intricate web of allegations surrounding Bankman-Fried’s enterprises, particularly in light of FTX’s collapse in November 2022, leading to his conviction on multiple counts of fraud and conspiracy.</p>
<h2 class="wp-block-heading" id="implications-and-sentencing">Implications and sentencing</h2>
<p>As the sentencing for Sam Bankman-Fried looms, the lawsuit underscores the gravity of the situation, implicating a prominent financial institution like Deltec Bank in the alleged wrongdoing.&nbsp;</p>
<p>The outcome of the legal proceedings will likely have far-reaching implications for all parties involved, potentially reshaping the regulatory landscape surrounding cryptocurrencies and financial institutions.</p>

Deltec Bank implicated in alleged Tether manipulation scheme

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