China News by Thebittimes.Com

Deltec Bank and Trust, the Bahamian bank that services the crypto industry, has been accused of knowingly aiding in the diversion of FTX customer deposits to Alameda Research and extending Alameda Research billions of dollars in credit to facilitate its issuance of popular stablecoin Tether. This is according to a motion filed in a class action lawsuit. The allegations are based on messages and testimony from former Alameda Research chief exec Caroline Ellison who agreed to share these messages and testimony to settle the lawsuit against her.  Deltec has served for years as one of the known banking partners for Tether, even publicly asserting the value of the stablecoin’s reserves.  Alameda Research was a trading firm that misappropriated billions in customer assets from FTX, a cryptocurrency exchange with significant overlapping leadership. The lawsuit specifically alleges that “ Deltec …individually identified incoming FTX customer deposits and manually transf...

The Board of Governors of the Federal Reserve System has issued a cease and desist order (C&D) to Farmington State Bank, claiming that it violated commitments it made in the process of gaining approval. The board is joined by the Washington State Department of Financial Institutions (WSDFI) and Farmington State Bank has consented to the order. Jean Chalopin, the president and chairman of FBH, the company that owned Farmington State Bank, also runs the popular Bahamas-based crypto bank Deltec. The bank has provided services to many crypto companies, including FTX, Alameda Research, Tether, and Bitfinex. Alameda Research had invested $11.5 million in Farmington State Bank at about the same time that Alameda Research extended an approximately $50 million loan to Deltec International Group, which owns Deltec Bank. The curious case of FTX and Farmington State Bank, aka Moonstone Farmington had previously announced its liquidation and sale of deposits and assets to the Bank of Eas...

Signature Bank is the best place for crypto banking, even if it goes bankrupt, Woorton co-founder Zahreddine Touag believes. The first day of Paris Blockchain Week (PBW) is bringing more thoughts on the ongoing crisis in the global Banking system, with industry executives comparing the collapses of major cryptocurrency firms like FTX with the fall of Banks like Silicon Valley Bank (SVB). On March 22, PBW hosted a panel discussion titled “FTX, Luna, Celsius, 3AC: From Hero to Zero,” bringing together industry executives from the blockchain venture firm Node Capital, crypto-friendly SIX Digital Exchange, Delta Growth Fund and crypto liquidity provider Woorton. The panel took place on PBW’s Mona Lisa stage.  The FTX, Luna, Celsius, 3AC: From Hero to Zero panel at the Paris Blockchain Week. Source: Livestream According to Woorton co-founder and head of trading Zahreddine Touag, the FTX and Celsius-related meltdown in the crypto industry has been triggered by different reasons than those t...