#Write2Earn FTX Accused of Secret Bank Deal to Profit from Tether in Court Documents

A recent lawsuit against bankrupt crypto exchange FTX has shed light on a potentially explosive secret deal with Deltec Bank, allegedly allowing FTX to profit from Tether (USDT) through unauthorized means.

The Allegations:

Undisclosed Credit Line: The lawsuit, filed by Voyager Digital, claims that FTX's sister company, Alameda Research, used an undisclosed credit line with Deltec Bank to mint billions of USDT in 2020 and 2021.

Profits Without Payment: Alameda allegedly sold this newly minted USDT for profit without immediately paying Deltec for the minting process. This essentially allowed them to operate with borrowed funds.

Misappropriation of Funds: The lawsuit further alleges that Deltec transferred FTX customer deposits to Alameda, potentially violating standard banking procedures and raising concerns about potential misappropriation of funds.

Special Treatment: The lawsuit suggests Deltec may have given preferential treatment to Alameda's transactions, particularly during market downturns.

The Implications:

These allegations, if proven true, could have significant consequences for the already tarnished reputation of the cryptocurrency industry. They raise concerns about:

Transparency and accountability: The alleged secrecy surrounding the deal raises questions about the transparency of FTX's operations and its commitment to responsible financial practices.

Market manipulation: The ability to mint and sell large amounts of USDT without immediate payment could potentially be used to manipulate the market price of the stablecoin.

Regulatory scrutiny: These allegations are likely to attract further scrutiny from regulators already concerned about the risks associated with cryptocurrencies.

Current Status:

It is important to note that these are just allegations at this stage, and neither FTX nor Deltec have publicly commented on the lawsuit. The court will ultimately decide the validity of these claims.