#FTX #Tether #USDT #CryptoScandal #Blockchain #Cryptocurrency #CryptoLawsuit #AlamedaResearch
A recent court case highlighted by Bloomberg on February 17 has shed light on a complex scheme involving FTX companies, which seemingly manipulated the creation and sale of Tether (USDT) for profit through a covert arrangement with Deltec Bank. According to the case, Caroline Ellison, the former CEO of Alameda Research, revealed that her company was able to generate USDT on credit via what she referred to as the “unofficial Deltec Line of Credit.” This arrangement allowed them to sell the USDT at a profit before the actual purchase funds were transferred to Tether’s account at Deltec. Alameda Research was closely associated with FTX, suggesting that these activities were part of a broader strategy across the affiliated companies.
The lawsuit further implicates Deltec Bank in a broader scheme of monetary misappropriation between FTX and Alameda, highlighting questionable fund transfers and special exemptions granted to Alameda that were not available to other customers. This introduction of a short-term credit line and a three-day grace period for Alameda to settle its USDT purchases appears to have been an exclusive, undisclosed advantage, bolstering allegations of preferential treatment and potential regulatory oversight failures. Deltec’s involvement in these transactions, coupled with its connections to other entities like Moonstone Bank and notable figures in the crypto world, paints a convoluted picture of the inner workings and financial maneuvers within the cryptocurrency industry. Amidst these allegations, Deltec has denied any misconduct, attributing the claims to baseless allegations by individuals seeking to settle their own legal disputes. As multiple legal actions progress, including separate lawsuits and an ongoing bankruptcy case involving FTX, the intricacies of these alleged cryptocurrency machinations continue to unfold, raising significant questions about oversight and ethical conduct in the digital asset space.
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