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Crypto bank Silvergate is reportedly being probed by the United States Department of Justice fraud unit over its involvement with the bankrupt FTX exchange and its affiliates.
The probe is investigating Silvergate’s hosting of accounts linked to former FTX CEO Sam Bankman-Fried’s businesses, according to a Feb. 3 report by Bloomberg, which cited “people familiar with the matter.”
The survey investigates Silvergate's hosting of accounts related to the activities of former FTX Chief Executive Officer Sam Bankman-Fried, as reported in February. 3 by Bloomberg, who quoted "those who know the question."
Silvergate was heavily impacted by the collapse of FTX in November, reporting a $1 billion loss last quarter. Silvergate was hit hard by the ftx crash in November, reporting a $1 billion loss in the final quarter.
Investigators are attempting to discover the depth of relations with FTX and Alameda.
Federal investigators are trying to determine if Silvergate and other businesses working with ftx knew about the situation. Silvergate says alameda opened a bank account in 2018, before the launch of ftx.
According to Silvergate, Alameda set up a bank account in 2018, before FTX was launched.
He claims he exercised due diligence and continued monitoring at the time, the report said.
This week, a representative of the bank said the company 'has a full compliance and risk management programme.'
Funny how they always time these announcements :) pic.twitter.com/7WxJYFawuF
— Rager (@Rager) February 2, 2023
On Jan. 27, Silvergate suspended its dividends, citing “recent volatility in the digital asset industry.” It's funny how they still time these ads:) pic.twitter.com/7WxJYFawuF— Rager (@Rager) Feb 2, 2023.
Related: US lawmakers renew request for answers from Silvergate on FTX: Report
Silvergate stock has lost 13% on the day tumbling to $17.14 in after-hours trading, according to MarketWatch. It submitted that it had at the time a "higher cash position than its deposits related to customers of digital assets".
Related: American legislators are renewing Silvergate's request for responses on FTX: ReportSilvergate stock lost 13% on the day by plummeting to $17.14 in trading afterhours, according to MarketWatch.
