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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...

Cryptocurrency hedge funds are making a significant comeback after suffering massive setbacks in 2022. Several of these funds are recovering and seeing remarkable growth, with optimistic projections for 2024. Pantera Capital, a leading name in the cryptocurrency fund sector, is a prime example of this resurgence. Despite a steep 80% decline in 2022, according to Bloomberg reports, Pantera Capital’s Liquid Token Fund has rebounded impressively, boasting an increase of nearly 80% as of mid-December. You might also like: Crypto hackers managed to steal $2b in 2023 The fund’s current investment strategy includes a significant stake in dYdX, while its combined investments in Bitcoin and Ethereum constitute less than 40% of the portfolio. Another notable performer is Stoka Global LP, a fund focusing primarily on alternative cryptocurrencies called altcoins. As of the end of November, Stoka Global LP reported a substantial gain of 268% for the year. This resurgence...

Binance faces significant user fund outflows and a drop in BNB value following the DoJ’s criminal charges and CEO Changpeng Zhao’s potential departure. Binance is seeing significant outflows from its exchange following the earlier news of the U.S. DoJ charging the leading exchange with three major crimes. Nansen, a blockchain analytics firm, reported a noticeable outflow from the exchange, as investors are withdrawing funds . Specifically focusing on the Ethereum ERC-20 network, Nansen observed a startling increase in net outflows, escalating from $10,000 to a staggering $45 million within just an hour. Since our first update on @binance, it appears that users are withdrawing funds from the exchange based on market rumors Netflow has gone from -$10K to -$45M over the past hour (Ethereum only)https://t.co/SikCRA6zl2 pic.twitter.com/cShuIJ76DN — Nansen (@nansen_ai) November 21, 2023 More details about Binance’s charges are set to be revealed today, as the DoJ is hol...

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...

Join Our Telegram channel to stay up to date on breaking news coverage This week, cryptocurrency kept in Alameda Research-affiliated wallets worth more than $1.7 million was traded on exchanges and moved via coin mixers It seems doubtful that the money is being moved by liquidators as part of bankruptcy proceedings involving FTX and Alameda because coin mixers are designed to conceal the movement of cryptocurrency cash between wallets. As of Friday, a fictitious on-chain detective ZachXBT has discovered that the funds are still in motion. ZachXBT stated that Bitcoin had been transferred to Wasabi, a wallet designed specifically for Bitcoin that allows users to bundle transactions together in an effort to obscure their origins. It is presently unknown who is moving the money from these wallets, but several cryptocurrency experts suggested Bankman-Fried because he is now at home and obviously has access to the internet. He denied it, but other well-known crypto developers, inv...

On-chain activity suggests that the hacker has sent at least 225 BTC (4.5 million) to OKX so far. Hackers who drained FTX and FTX USA of over $450 million worth of assets just moments after the doomed crypto exchange filed for bankruptcy on Nov. 11, continue to move assets around in an attempt to launder the money.  A crypto analyst who goes by ZachXBT on Twitter alleged that the FTX hacker s have transferred a portion of the stolen funds to the OKX exchange, after using the Bitcoin mixer ChipMixer. The analyst reported that at least 225 BTC — worth $4.1 million USD — has been sent to OKX so far.  1/ Myself and @bax1337 spent this past weekend looking into the FTX attacker’s deposits to ChipMixer. It appears they’ve likely been transferring a portion of the stolen FTX funds to OKX after withdrawing from CM So far we’ve accounted for at least $4.1m (255 BTC) sent to OKX pic.twitter.com/C46JZWtktn — ZachXBT (@zachxbt) November 29, 2022 According to ZachXBT, the FTX hacker fir...