Bank to file motions to dismiss lawsuits alleging it aided and abetted FTX founder in fraud
NASSAU, BAHAMAS — Deltec Bank said yesterday that it plans to “vigorously” defend against what it described as “meritless” claims by an aggrieved FTX investor that it knowingly aided and abetted in fraud prior to the crypto exchange’s infamous collapse.
In a statement yesterday, Deltec noted that on February 22, a putative class-action complaint was filed by an FTX investor in federal court in Miami, Florida, alleging that over a dozen banks, venture capital firms, and accountants were somehow aware of and facilitated FTX’s and its former CEO’s fraud.
“The complaints include frivolous claims against Deltec Bank and its Chairman, Jean Chalopin,” Deltec stated.
Last week, the FTX investor filed another class-action complaint in the state of Washington asserting the same claims.
“Deltec Bank and Mr Chalopin plan to continue to vigorously defend against the meritless claims in the complaint, and motions to dismiss both lawsuits will be forthcoming. Deltec Bank and Mr Chalopin had no knowledge of or the ability to assess any wrongdoing by FTX or its executives until the numerous public revelations in late 2022,” the bank stated, noting that at present it does not anticipate any impact on the bank or its clients.
“Deltec Bank holds an unwavering commitment to good corporate governance practices, regulatory compliance, and sound risk management in the course of conducting its business. Client assets are held off balance sheet and Deltec Bank maintains a conservative balance sheet, which is governed by stringent regulatory requirements, and is independently audited,” the bank stated, adding: “Deltec Bank conducts its banking relationships in a manner that is fully compliant with all applicable laws and sound risk management practices,” Deltec said.
Deltec and Mr Chalopin are defendants in a class action lawsuit filed by Connor O’Keefe. The lawsuit accuses them of being aware of FTX founder Sam Bankman-Fried’s activities but neglecting to address his misuse and misappropriation of FTX customer funds.
It is alleged that Deltec, Mr Chalopin and Moonstone Bank, a small Washington State bank he owned, played a significant role in facilitating Sam Bankman-Fried’s trafficking of funds across the US border. The US Justice Department previously seized approximately $50 million from Moonstone accounts, which were deposited in the name of Bahamas-based FTX Digital Markets.
