Allegations of Fraudulent Practices: FTX Clients File Lawsuit Against Deltec Bank

Reports have emerged indicating that Deltec Bank & Trust, a prominent partner of Tether, provided a short-term credit line of up to $2 billion to Alameda Research. This revelation, sourced from Bloomberg via legal documents, has stirred controversy surrounding the bank's involvement in facilitating allegedly fraudulent activities.

In response to these revelations, clients of the FTX exchange have taken legal action against Deltec Bank, accusing it of complicity in fraudulent schemes orchestrated by FTX and Alameda Research. The lawsuit alleges that the bank knowingly collaborated with these entities in questionable practices involving the issuance and trading of USDT stablecoins.

The lawsuit reveals that Deltec Bank provided Alameda Research with a substantial credit line, purportedly utilized for USDT issuance. It is alleged that Alameda Research exploited these funds to trade USDT at a premium, profiting from discrepancies in stablecoin pricing. Furthermore, the plaintiffs claim that Deltec Bank deliberately routed FTX deposits to Alameda Research, despite being aware that these funds belonged to the exchange's clients.

This legal action adds to Deltec Bank's troubled history, which includes previous accusations of money laundering and asset confiscations by US authorities. With its chairman, Jean-Jacques Pierre Chalopin, also facing scrutiny for connections to cryptocurrency companies, the bank finds itself embroiled in yet another legal battle, casting doubt on its practices and integrity.