TechFlow news, according to Bloomberg, a legal filing submitted Friday to a federal court in Florida alleges that Bahamian bank Deltec Bank & Trust Ltd provided SBF with billions of dollars in "secret" short-term credit to purchase Tether.
The filing also claims that Deltec helped SBF misappropriate customer funds by transferring money between FTX and Alameda accounts.
SBF's companies began opening accounts at Deltec in 2018, partly to gain easier access to Tether. According to the lawsuit, Alameda could purchase tokens simply by transferring funds from its Deltec account to Tether's account. Starting in 2021, Deltec granted Alameda a three-day grace period to pay for purchased Tethers, effectively providing the fund with a short-term line of credit. The bank did not offer such grace periods to other clients, and a Deltec executive instructed Alameda traders to keep this arrangement confidential. This "secret credit line" sometimes exceeded $2 billion. Alameda then sold these tokens for profit. Deltec attorney Desiree Moore stated that the bank and its chairman Jean Chalopin were unaware of FTX’s misconduct before it became public.
