The US Department of Justice’s Fraud Section is examining Silvergate’s dealings with the cryptocurrency exchange FTX and the associated hedge fund Alameda Research. This was reported by Bloomberg, citing its own sources.
According to the publication, prosecutors are examining bank accounts linked to the exchange’s founder Sam Bankman-Fried. The investigation is at an early stage and Silvergate has not been charged with any wrongdoing.
The bank said it is reviewing FTX and Alameda Research transactions. Alameda opened an account with them in 2018, before the exchange was founded.
The financial institution noted that both companies underwent checks during the registration process and as part of annual monitoring.
Silvergate is mentioned in the list of creditors of the bankrupt Bitcoin exchange. As of writing, the amount invested remains unknown.
According to court documents, FTX executives provided the preferences for Alameda Research. The exchange’s client assets were transferred to Alameda to cover the hedge fund’s losses.
Earlier, Senators Elizabeth Warren, John Kennedy and Roger Marshall urged Silvergate CEO Alan Lane to provide подробную информацию о связях банка and FTX.
Back in late 2022, Silvergate faced a class-action lawsuit over an alleged role in transferring FTX users’ deposits to Alameda Research accounts.
In January 2023, federal prosecutors seized more than more than $6 million held on three accounts at Silvergate opened in the name of the Bahamian subsidiary of the exchange, FTX Digital Markets.