FTX Customers’ Claims Against Silvergate Bank Allowed to Proceed

Cryptocurrency investors who say they lost money in the collapse of the now-defunct FTX exchange and its Alameda Research sibling have adequately pleaded claims against Silvergate Capital Corp., a federal court ruled.

Silvergate, which is liquidating, failed to dislodge any of the claims in the token holders’ proposed class action, Judge Ruth Bermudez Montenegro said Wednesday for the US District Court for the Southern District of California. The investors alleged Silvergate and its Silvergate Bank subsidiary aided and abetted fraud, conversion, and breaches of fiduciary duty, according to the opinion. They also brought claims of negligence, violations of California consumer ...