British Virgin Islands-based investment management and cryptocurrency trading firm Statistica Capital has filed a lawsuit against New York-based Signature Bank, alleging that the financial institution facilitated the fraudulent activities of crypto exchange FTX before its collapse.

According to a Bloomberg report, the class suit was filed at the US District Court for the Southern District of New York in Manhattan on Monday. The complaint alleged that Signature facilitated and played a significant role in the FTX fraud.

The complaint alleged that the New York-based bank had known about FTX’s fraudulent activities since June 2020. However, Signature allegedly facilitated the fraud by promoting the exchange to the public and failing to suspend the Alameda or FTX accounts.

Statistica filed the lawsuit as a proposed class action to enable it and other affected entities to recover damages from FTX’s collapse due to the Signature’s malfeasance.

(By Mandy Williams)