A judge from the Northern District of California, Jacqueline Scott, ruled out that three lawsuits against defunct crypto bank Silvergate Bank linked to failed crypto exchange FTX would be combined.
Four investors have accused Silvergate of assisting FTX, the now-collapsed crypto exchange, in committing investor fraud.
The court passed an order that “The Silvergate cases involve common questions of law and fact, as they name common defendants, arise from the same alleged course of conduct, and assert overlapping causes of action, such that the Silvergate cases are appropriate for consolidation.”
Nevertheless, these cases will be handled differently in court than other federal cases involving FTX and its founder Sam Bankman-Fried.
The complaint filed by four plaintiffs put allegations that Silvergate has aided FTX in defrauding investors. It includes illegal transfers of FTX customers’ funds to its sister trading firm Alameda Research.
Also Read: Collapsed Crypto Exchange FTX Could Restart, as Per Its Attorneys
