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...

Troubled cryptocurrency trust Prime Trust has been accused of using customer funds and venture capital to cover lost deposits, according to court documents filed by Nevada’s Financial Institutions Division (FID). Attorneys filed the petition on Monday to impound Prime Trust assets, appoint a receiver for rehabilitation, and bar Prime execs and employees from accessing accounts. The cryptocurrency trust is currently licensed as a money transmitter in 15 US states. Most major customers claim to have stopped using the custodian over the last few weeks — which has exacerbated its financial woes to the extent that regulators are worried the firm will do “irreparable harm” if a receiver doesn’t step in. “Prime is in an unsafe financial condition and/or is insolvent,” the FID warned in its petition. “ Prime condition will only progressively worsen as customers continue to withdraw.” The FID filed a cease and desist against Prime Trust on June 21, ordering i...